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THE ULTIMATE GUIDE


TO SPORTS MARKETING
Second Edition

Stedman Graham
Lisa Delpy Neirotti
Joe Jeff Goldblatt

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DOI: 10.1036/0071381139
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This book is dedicated to you—the sport and event


professionals, the managers and marketers, students,
athletes, fans, spectators, and others who join us in the
further development of this exciting profession.
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CONTENTS
Foreword xi
Preface xiii
Acknowledgments xvii

PART 1
THE ROLE AND SCOPE OF SPORT EVENTS

1 Understanding the Sport Industry,


the Players, and Opportunities 3
Appreciating the History and Variety of Sport Events 5
The Starting Blocks 12
Personality, Lifestyle, and Work Style
Characteristics You Will Need 14
Expectations 14
Game Highlights 17

2 Critical Planning to Master the Game 19


SWOT: The Strengths, Weaknesses,
Opportunities, and Threats Analysis 20
Creating and Working Your Plan 26
Plan for Uniqueness 30
International Event Planning 30
Conducting Your Planning Meetings 31
Celebrating Success and Controlling Stress 31
Planning for Contingencies 34
Sport Event Planning: Summary 35
Game Highlights 36
Resources for Event Planning Software 37

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VI CONTENTS

3 Designing, Planning, and Controlling


Event Logistics 39
Asking the Right Questions 39
Logistics 40
Working with Vendors 43
Selecting a Web Partner 49
Volunteers 52
Uniform Design and Distribution 53
Facilities 55
Weather 56
Traffic Flow: Keep Things Moving 56
Transportation 58
Special Accommodations 61
Food and Beverage 63
Ticketing and Admissions 65
Ticketing and Seating Variations 67
Seating Design and Control 68
Safety and Emergency Precautions 68
Hallmark or Recurring Events 69
Award Ceremonies 70
Negotiating Hotel Room Blocks 71
Bookends and Other Conflicts 74
Beginning the Logistical Planning Cycle 75
Game Highlights 79

4 Providing Hospitality at Sport Events 81


Questions and Considerations When
Purchasing a Hospitality Package 82
À La Carte and Individual Hospitality 84
Winning the Hospitality Game:
10 Effective Hospitality Strategies 85
Working within a Budget 92
A Final Word on Sport Event Hospitality 93
Game Highlights 95
References for Protocol 96

5 Negotiations and Contracts 97


Option to Renew and Right of First Refusal 98
Termination and Arbitration 99
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CONTENTS VII

Risk Management and Insurance 99


Sponsor and Supplier Agreements 100
Television 104
Personnel 104
Sport Celebrities 105
Not-for-Profit Beneficiaries 105
Venue Contracts 106
Licensees 106
Hospitality 107
When to Utilize Legal Counsel 108
When to Consult a Sport
Management/Marketing Consultant 109
Litigation, Arbitration, and Alternative Dispute Systems 110
Closing Arguments 111
Game Highlights 112

6 Risk Management: Protecting Your Investment 113


Tell It to the Judge 114
Training: The First Preventative Measure 115
Risk Assessment 116
Athlete Protection 118
Loss Prevention 118
Storage 119
Access to Events 120
Hiring Staff 122
Transporting the Goods 124
Wrap-Up 125
Safety First 126
Anticipating Problems 128
Incident Reporting 130
Securing Adequate Insurance 131
The Final Score 137
Game Highlights 137

7 Effectively Recruiting and Leveraging


a Sport Celebrity 139
Finding the Right Match 140
Contacting and Persuading the Sport Celebrity 141
What Does It Cost? 143
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VIII CONTENTS

Maximizing the Celebrity’s Appearance 144


Ideas for Sport Celebrity Appearances 148
Game Highlights 149

8 Event Marketing 151


Part I: Traditional Event Marketing 152
Part II: Corporate Event Marketing 169
Game Highlights 174

PART 2
PRACTICAL METHODS
FOR ACHIEVING SUCCESS

9 Financing Sports Events 177


Finding Capital 177
Contracting Outside Agencies 194
Nonsponsorship Funding Sources:
Foundations and Financial Institutions 195
Controlling Costs 196
Final Words of Advice 197
Game Highlights 198

10 Licensing Agreements and Merchandising 199


The Licensing Process 200
Vending Locations, Design, and Operations 201
Marketing Licensed Merchandise and Guarantees 202
Training Your Sales Team 203
Selling Merchandise at Smaller Events 204
Game Highlights 205

11 The Ins and Outs of Sport Events 207


Cycling 208
Running Races 208
Golf Tournaments and Outings 214
3-on-3 = 7 Times the Fun 218
Alternative or Action Sports 220
Ultra Sport Events 222
Multicity Sport Events 222
Game Highlights 223
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CONTENTS IX

12 Sports Tourism: An Economic Catalyst for Cities 225


Organizing a Sports Commission 227
Assessing Your Community 227
Bidding for Events 229
Homegrown Events 232
Marketing Your City as a Sports Center 233
Measuring the Economic Impact 234
Additional Research 246
Game Highlights 246

13 Charitable Events 247


Who Benefits? 248
Finding the Right Charitable Organization 249
What Does the Charity Bring to the Sport Event? 250
Legal Considerations 250
Seeking Sponsors 254
The Charity Spokesperson 254
Potential Liabilities 254
Measuring Your Success 255
Game Highlights 256

14 Closing Ceremonies: Advice to New Sport Event


Management and Marketing Professionals 259
Get Up at Dawn: The Future Is Yours 259
Ready, Set, Go! 261
A Final Word 262

PART 3
APPENDIXES

1 Sample Agreements 267


A Independent Contractor Agreement 267
B Sponsorship Agreement 273
C Licensing Agreement 277

2 Useful Resources 287


A Career Opportunities in Sport Event
Management and Marketing 287
B Types of Sport Events 288
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X CONTENTS

C Sport Awards Banquet: Sample Script 290


D Production Schedule Designed by Robert W. Hulsmeyer and
Adapted for Basketball by Dylan Aramian 292
E Olympic Games Official Opening/Closing Ceremonies 296
F Rules for Establishing Precedence (Protocol)
for Your Sport Event 299

References 305

Index 309
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FOREWORD
THE SPORT EVENT MANAGEMENT AND MARKETING FIELD is big business
and has grown enormously during the last two decades. From small
participatory events to the mega hallmark events seen by millions,
this industry had mirrored the explosive growth of media, entertain-
ment, and tourism.
This worthy volume has arrived at a critical time in the develop-
ment of this growing profession. I am certain that this text will pro-
vide useful information for a wide range of sport event management
and marketing enthusiasts: from those considering entering the pro-
fession to those with extensive professional experience. The broad
information covered in the text will prove invaluable to those with a
variety of professional experiences who are rapidly ascending to
organize and produce effective sport events.
There are very few books of this kind in the marketplace because
the profession is so new. My experience in television and in the “big
event” business has reinforced my appreciation for well-executed
events. Trial and error produce costly mistakes, so having a blueprint
and reference materials are essential. The numerous checklists and
the extensive appendixes contained in this volume will make this a
resource book for your entire career. For those who are learning about
this exciting profession, this book is a must.

Dick Ebersol, President


NBC Sports

XI

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PREFACE
IN MY EARLY YEARS OF HIGH SCHOOL, I was determined to live my life
beyond the basketball court. Fortunately, I had mentors to assist me
in my journey. My mother and father; my high school coach, John
Roberson; and my third-grade Sunday school teacher, Inez
Edmonds—all encouraged me to be my best on the court and off.
Throughout these pages, Lisa, Joe, and I will provide you with a sim-
ilar guide to becoming the best professional you can be in the exciting
field of sport event management and marketing.

Stedman Graham

BACKGROUND
Over the past decade, the sport industry has dramatically grown and is
now estimated at over $500 billion. New York City alone claims that the
economic impact of the sport industry is $6.9 billion, which includes
sports-related media, organizations, and events. Furthermore, the
International Events Group in Chicago reports that the amount spent
on sport sponsorship continues to increase. It reached $5.9 billion in
2000. This growth has no end in sight, as the sport and entertainment
fields grow closer together and event marketing continues to receive a
greater percentage of corporate marketing budgets.
The purpose of this book is to help you capitalize on the oppor-
tunities associated with the sport industry by becoming acquainted
with the history and evolution of this dynamic field, as well as by

XIII

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XIV PREFACE

learning the skills necessary to succeed in it. The three authors view
this book as a guide for anyone interested in the field, regardless of
race, sex, or experience. Use this book and the information it presents
as the key to opening doors and breaking through glass ceilings. For
industry veterans, read this book as a reminder of why you selected
the profession and as a way to refresh your skills and imagination.

DEFINING SPORT EVENT MANAGEMENT AND MARKETING


The term sport event management and marketing includes the organiza-
tion, marketing, implementation, and evaluation of any type of event
related to sport. Examples are from local school and community sport
events, not-for-profit and corporate events, intercollegiate sport pro-
grams, and amateur and professional league activities such as the
Olympic Games and Super Bowl.

WHO SHOULD READ THIS BOOK?


The Ultimate Guide to Sports Marketing is for anyone interested in
breaking into the sport event profession or for those who have inci-
dentally found themselves challenged with the task of producing a
sport event for any organization, profit or nonprofit. In other words,
whether you are a corporate event planner, the local charity fund-
raiser, a volunteer, the director of a high school sport championship
game and award banquet, a league official, or someone looking for a
new and exciting career, this book is for you.

WHY YOU SHOULD READ THIS BOOK


The materials provided on the subject, the professional vocabulary and
background, the pertinent checklists, and the creative ideas in this book
are certain to assist you in achieving the professionalism, excitement,
exposure, profit, and other critical objectives necessary for success.
To better understand the professional field of sport event man-
agement and marketing, we will take you behind the scenes to com-
prehend how special events in sport can be effective and profitable.
You will meet dozens of seasoned professionals who have helped
establish and shape this growing field. Their experiences will help
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PREFACE XV

you avoid many of the pitfalls and failures that have befallen them.
Use the coach-player metaphor as a guide to developing your
own ideas for effective sport event programs. A winning coach often
serves as a mentor to his or her players. World-renowned coaches
such as Vincent Lombardi, Lou Holtz, Eddie Robinson, and John
Wooden understand that in order to win with people, coaches must
capitalize on the assets of each player and blend them to build a con-
sistently successful organization.
We encourage you to evaluate the assets you bring to this profes-
sion (e.g., creativity, persistence, detail orientation) and to look for
mentors who can help you further develop your talents. The exam-
ples that are provided in this volume will certainly enhance, and per-
haps accelerate, your achievement. Your rate of accomplishment,
however, will largely depend on your ability to identify mentors and
adopt and adapt their advice to your own needs.
If you are using this book to develop sport events for the organi-
zation you represent, remember that each event is a distinctly per-
sonal representation of the culture of the individual sponsor or pre-
senter. Do not use the examples we have given as a final plan but as
a catalyst to your thinking process. Once again, however, the role of a
good mentor cannot be overemphasized. After reading this book
thoroughly, continue your research by interviewing successful indi-
viduals in the field and developing an apprentice relationship with an
organization or professional that you respect and admire. This expe-
rience will bring an even greater meaning to your reading, and the
practical experience will greatly enhance your chances of finding a
position in this highly competitive field.
A formal education in sport event management and marketing
will also assist you in your professional development and career
search. See Appendix 2-A for more information on potential career
opportunities.

HOW TO OBTAIN THE MOST BENEFIT FROM THIS BOOK


We recommend that you read this book in sequential order to gain the
maximum benefit. To assist you with retention and understanding,
we have used several techniques to serve as anchors for your think-
ing process.
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XVI PREFACE

Each chapter begins with a thought-provoking question. Pause


and contemplate this question before reading the chapter. Often,
more can be learned from a well-constructed question than from the
answer that follows. We try to provide our own answers for each
question, but ask yourself whether other answers might be more rel-
evant to your own interests. Also ask yourself where you can find
more information to help you better understand the answers to the
questions.
Each chapter concludes with a checklist of key points presented
under the heading of “Game Highlights.” Be sure you review these
key points before continuing. Overall, we have organized the book in
a skill-building style; you should master one set of skills before ven-
turing to the next chapter.
The authors recognize the difficulty of capturing the entire body
of sport event management and marketing knowledge in one book
but have tried to provide suggestions and examples that are univer-
sal in nature and can be applied to any type or size event. It is our
desire that you not only read the chapters but also continue to return
to them for further study and reference. This book is meant to be
equal parts of inspiration, motivation, and education.
The word education is derived from a Latin word meaning “to
extract.” If this book is to fulfill its mission of serving as an educa-
tional tool for you, your level of accomplishment will be determined
directly by your desire to extract information. We can only open the
door for you to this new profession. Your desire and hunger to suc-
ceed, coupled with experience and mentoring, will ultimately draw
you through this entrance and determine the height to which you
rise. We challenge each of you to not only dream big dreams and aim
high, but also through your efforts to write a new chapter in this
dynamic profession. Always remember, the successful event manag-
er and marketer share the same discipline, instinctive talent, and
tenacity of the best athletes. The distance you reach will be deter-
mined by the effort you expend. So…on your mark, get set, go!

Stedman Graham
Lisa Delpy Neirotti
Joe Jeff Goldblatt
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ACKNOWLEDGMENTS
THE METAPHOR OF A SUCCESSFUL TEAM describes many effective organi-
zations. Indeed, excellent teamwork is the most efficient and produc-
tive process for achieving goals and objectives.
The authors of this book certainly understand this team concept.
Without the committed, generous, and talented team of sport event pro-
fessionals, we could not have amassed so much valuable information.
Therefore, we must acknowledge those teammates who believe as
we do that successful sport programs are special events. These individ-
uals and organizations comprise the most successful team of all. They
are responsible for the remarkable achievement of helping sport find a
mass audience through reinventing itself as a special event medium.
Pioneers all, their early and long labors have given the audiences of
today and tomorrow the opportunity to enjoy special events in sports.
Therefore, the authors gratefully acknowledge the following indi-
viduals. We apologize for any oversight or omission on this list.

Deborah Abel Michael Buczkowski


Scott Allen Peter Caparis
Dylan Aramian Hill Carrow
Carl Bach Alice Conway
Monica Barrett Terry Cooksey
Shmuel Ben-Gad Lee Coorigan
Ron Bergin Jim Dalrymple
Alexander Berlonghi Mary Ann Davies
Jim Birrell Frank Deford
Dewey Blanton Jim Downs
Charles Brotman Sue Ann Drobbin
XVII

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XVIII ACKNOWLEDGMENTS

Jennifer Duncan Barnett Lipton


Mike Dyer Jimmy Lynn
Dick Ebersol Andrew Marsh
Jim Elias Mark McCullers
Ed Eynon Gianni Merlo
David Falk Melissa Minker
Douglas Frechtling, Ph.D. LeConte Moore
Gil Fried Jan Moxley
Kenny Fried Jessica Muskey
Dennis Gann John Naisbitt
Barry Glassman Suzanne O’Connor
Mark Goldman Susan O’Malley
Marty Grabijas Richard B. Perelman
Anita Graham Barbara Perry
Wendy Graham Tom Peters
Bill Gray Brenta Pitts
Chris Green Gerald M. Plessner, CFRE
Bill Hall Dick Pound
Dennis Harp Emilio Pozzi
Donald E. Hawkins, Ed.D. Karen Pritzer
Denise Hitchcock, APR Robert Rinehart
John Hodges Susan Roane
Ed Hula Carol Rogala
Connie Israel Mary Ann Rose
Clyde Jacobs Jeff Ruday
Jeff Jacobs Beth Ruggiero
Mamie Jacobs Steve Schanwald
Chris Janson Tim Schneider
Jack Kelly Jean-Claude Schupp
James Kemper Josephine Sherfy
Phil Knight Barry Silverman
Jill Kriser Dr. Valene Smith
Susan Lacz Ky Snyder
Andre Lanier Sheryl Spivack, Ph.D.
Glen Lietzke Jim Steeg
Jennifer Jordan-Lock Howard Stupp
Dan Levy Frank Supovitz
Deborah Levy Tom Swanson
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ACKNOWLEDGMENTS XIX

Jeanne Taylor Tommy Walker


Michele Tennery Neville Water
Ron Thomas Bob Waterman
Stephen Joel Trachtenberg Armstrong Williams
Jim Tunney Oprah Winfrey
Peter Ueberroth Dan Witkowski
Osmund Ueland Virginia Wolf
Lesa Ukman Larry Yu, Ph.D.
Jim Vandak and the sport and event
Hugh Wakeham management students at The
Clay Walker George Washington University

We hope that you, the reader, will come to share our appreciation
for these team players as you explore this field. Perhaps one day you
will have the opportunity to meet some of these outstanding sport all-
stars in person and thank them for their contributions that enabled us
to provide you with their secret plays.
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P
1 A R T

THE ROLE AND SCOPE


OF SPORT EVENTS
The oldest standing building in Rome is the
Colosseum.
Red Smith, announcer,
on the role of sports in society

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C H
1
A P T E R

UNDERSTANDING
THE SPORT INDUSTRY,
THE PLAYERS,
AND OPPORTUNITIES
It comes down to a very simple saying: There is a
right way and a wrong way to do things. You can
practice shooting eight hours a day, but if your tech-
nique is wrong, then all you become is very good at
shooting the wrong way.
Get the fundamentals down and the level of
everything you do will rise.
Michael Jordan

W HY IS SPORT EVENT MANAGEMENT and marketing a grow-


ing industry, and how can you increase your chances
for rapid success?
Sport is a universal phenomenon that crosses all social,
religious, and language barriers. It is a common denomina-
tor that appeals to the masses and is thus a very attractive

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4 THE ULTIMATE GUIDE TO SPORTS MARKETING

and competitive career path. Large sport marketing firms like SFX
report receiving over 5,000 résumés annually, while Nike, the shoe
company, receives over 35,000 unsolicited résumés for everything
from secretarial to sales to administrative positions.
Within the sport industry, one can pursue a number of different
career opportunities, including managing and marketing athletes,
sports organizations, products, facilities, and events. Although chal-
lenging to break into, sport job opportunities continue to grow in
number, thanks to the seemingly insatiable appetite for sport enter-
tainment. More than 14,000 companies and 29,000 executives are cur-
rently listed in the Sports Market Place Directory, a national sport
register. Although an exact number of sport-related jobs is difficult to
calculate, estimates are as high as 5 million. Not all sports jobs are
glamorous, however. Many have tasks that are similar to other indus-
tries (sales, accounting, clerical), and the pay may be low. Nonetheless,
the demand for these positions remains high because applicants want
to work in an exciting and challenging profession. Many have
remarked, “I get paid for doing what is essentially my hobby!”
While the focus of this book is primarily on the management and
marketing of sport events, much of the information applies to any
position in the sports industry. Some of the responsibilities of a sport
event professional are understanding the goals and objectives of the
event and its host(s); conducting research and designing an appro-
priate plan; budgeting; marketing to all constituents (participants,
spectators, sponsors, media); hiring, training, and coordinating staff
and volunteers; selecting and supervising contractors and conces-
sionaires; implementing the plan; and evaluating results.
Preparing for a sport event is similar to preparing for a sport com-
petition. Winning coaches spend hours reviewing tapes and conduct-
ing research to determine the best game plan. They scout and
aggressively recruit the top players for their team and then train and
coordinate these players on the field to win. After the game, the coach
evaluates each of the player’s performance, as well as the team as a
whole. In addition, the outcome of a sport competition and a sport
event is unpredictable. Yet in both, success is more likely with train-
ing, planning, and practice. A sport event manager may assemble as
few as 20 or as many as hundreds of vendors, suppliers, and profes-
sionals, but all must work together to form a winning team.
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CHAPTER 1 UNDERSTANDING THE SPORT INDUSTRY 5

There will be no second chance. Championships are won one


game at a time. The sociologist William Graham Summer once wrote,
“The sport establishment is a system of antagonistic cooperation.”
Each vendor or player may have a private and personal agenda that
must be suppressed for the sake of team victory. The only goal,
shared by all, is to triumph with each sport event.

APPRECIATING THE HISTORY AND


VARIETY OF SPORT EVENTS
Although historical accounts credit alternatively the Greeks, Chinese,
or Egyptians as the originators of sport, we know from the first writ-
ten account of sport, Homer’s Iliad, that athletic competition from the
beginning was part of a larger festival—in this case, the funeral
games from Patroclus. Drawings found on the walls of prehistoric
caves show that men and women have always enjoyed leisure, recre-
ation, and sport, and that these activities were often coupled with cel-
ebratory or special event activities. The organizing committee for the
1994 Winter Olympic Games in Lillehammer, Norway, patterned the
Game’s logo, sport pictograms, and merchandising line after 4,000-
year-old Norwegian rock carvings and elements of ancient
Norwegian culture (see Figure 1-1).
Today, thousands of sport events take place each year, from grass-
root tournaments such as a youth volleyball or soccer tournament to
fund-raisers like the Susan G. Komen “Race for the Cure” to
megaevents the size of the Olympic Games and World Cup Soccer.
Collegiate and professional sport competitions are also categorized as
events, especially as the emphasis moves more toward the entertain-
ment of fans. (See Figure 1-2.) Each of these sport events is organized
by one or more of the following entities: national sport governing
bodies, sport venues/clubs/teams, sport commissions, educational
institutions, corporations, and private entrepreneurs.
Events can further be classified as spectator-driven or participant-
driven. Most hallmark events such as the Olympic Games are specta-
tor-driven, while grassroot tournaments are participant-driven.
Upon further evaluation, it is common to find a myriad of events
within one event. A football game, for example, offers tailgate parties;
a pregame, halftime, and postgame show; corporate hospitality tents
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Figure 1-1 Official Sport Pictograms for the 1994 Winter Olympic Games
Graham 01 10/5/01 1:26 PM Page 7

CHAPTER 1 UNDERSTANDING THE SPORT INDUSTRY 7

Figure 1-2

Types of Sport Events


National Governing Body (NGB) Sanctioned Events
Disabled Sport Events
Professional Sport Events
High School and Collegiate Athletics
Grassroot and Youth Events
Unique/Proprietary Sport Events
Business Meetings, Conventions, and Clinics for All Sport Organizations

and suites; and game-day promotions and giveaways. While the main
event takes place, each of these auxiliary events adds value to the spec-
tator and sponsors. To help attract crowds, many teams are now mim-
icking the marketing and operational slogan of the Buffalo Bisons, a
triple A baseball team: “Every Game’s an Event” (see Figure 1-3).

Figure 1-3

1999 Buffalo Bisons


Home Promotional Schedule
April 8 OMAHA 1:05 p.m. Opening Day
April 9 OMAHA 7:05 p.m. fridaynightbash!
April 10 OMAHA 2:05 p.m. Hippity Hop Egg Hunt
April 11 IOWA 6:05 p.m. Easter Parade
April 12 IOWA 7:05 p.m. Molson Monday/Dyngus Day
April 13 IOWA 1:05 p.m. Two for Tuesday
April 21 NEW ORLEANS 7:05 p.m. Business Person’s
Day/Secretary’s Day
Celebration
April 22 NEW ORLEANS 7:05 p.m. Pizza Hut Pop-up Thursday
April 23 OKLAHOMA CITY 7:05 p.m. fridaynightbash!
April 24 OKLAHOMA CITY 2:05 p.m. Earth Day Celebration
April 25 OKLAHOMA CITY 2:05 p.m. TBA
May 3 LOUISVILLE 7:05 p.m. Molson Monday
continued on next page
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8 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 1-3 continued

May 4 LOUISVILLE 11:05 p.m. Two for Tuesday/Buffalo


Public School Days
May 5 LOUISVILLE 1:05 p.m. Business Person’s Day
May 6 PITTSBURGH 4:05 p.m. Exhibition Game, Presented by
Old Vienna
May 12 NASHVILLE 7:05 p.m. Business Person’s Day
May 13 NASHVILLE 11:05 p.m. Pizza Hut Pop-up
Thursday/Catholic School
Day
May 14 INDIANAPOLIS 7:05 p.m. Carnival Weekend/
fridaynightbash!
May 15 INDIANAPOLIS 2:05 p.m. Carnival Weekend/Darien
Lake Day
May 16 INDIANAPOLIS 2:05 p.m. Carnival Weekend/100 Club
Day
May 17 INDIANAPOLIS 7:05 p.m. Molson Monday/German
Festival Night
May 28 NEW ORLEANS 7:05 p.m. fridaynightbash!
May 29 NEW ORLEANS 7:05 p.m. Jubilee Little League
Weekend/Summer Safety Day
May 30 NEW ORLEANS 7:05 p.m. Jubilee Little League Weekend
May 31 NEW ORLEANS 7:05 p.m. Molson Monday/Memorial
Day Picnic
June 6 NASHVILLE 6:05 p.m. TBA
June 7 NASHVILLE 7:05 p.m. Molson Monday
June 8 NASHVILLE 7:05 p.m. Two for Tuesday
June 9 NASHVILLE 1:05 p.m. Business Person’s Day
June 10 LOUISVILLE 7:05 p.m. Pizza Hut Pop-up Thursday
June 11 LOUISVILLE 7:05 p.m. fridaynightbash!
June 12 LOUISVILLE 7:05 p.m. TBA
June 13 LOUISVILLE 12:05 p.m. TBA
June 14 INDIANAPOLIS 7:05 p.m. Molson Monday
June 15 INDIANAPOLIS 7:05 p.m. Two for Tuesday/Italian
Festival night
June 25 NEW ORLEANS 7:05 p.m. fridaynightbash!
June 26 NEW ORLEANS 7:05 p.m. Donruss Baseball Card Day

continued on next page


Graham 01 10/5/01 1:26 PM Page 9

CHAPTER 1 UNDERSTANDING THE SPORT INDUSTRY 9

Figure 1-3 continued

June 27 NEW ORLEANS 2:05 p.m. TBA


June 28 OKLAHOMA CITY 7:05 p.m. Molson Monday
June 29 OKLAHOMA CITY 7:05 p.m. Two for Tuesday
June 30 OKLAHOMA CITY 1:05 p.m. Business Person’s Day
July 4 LOUISVILLE 7:05 p.m. Independence Day
Celebration
July 5 LOUISVILLE 7:05 p.m. Molson Monday/Polaroid
Team Photo Day
July 6 INDIANAPOLIS 7:05 p.m. Two for Tuesday/Irish Festival
Night
July 7 INDIANAPOLIS 1:05 p.m. Business Person’s Day
July 8 INDIANAPOLIS 7:05 p.m. Pizza Hut Pop-up Thursday
July 9 OMAHA 7:05 p.m. fridaynightbash!
July 10 OMAHA 7:05 p.m. Wheaties Day of Champions
July 11 IOWA 6:05 p.m. Surf & Snuggle Tee Shirt Day
July 12 IOWA 7:05 p.m. Molson Monday featuring
“The Blues Brothers Act”
July 22 NASHVILLE 7:05 p.m. Pizza Hut Pop-up Thursday
July 23 NASHVILLE 7:05 p.m. fridaynightbash!
July 24 OKLAHOMA CITY 7:05 p.m. TBA
July 25 OKLAHOMA CITY 7:05 p.m. Turn Back the Clock
Day/Buffalo Baseball Hall of
Fame
July 26 OKLAHOMA CITY 7:05 p.m. Molson Monday
August 5 LOUISVILLE 7:05 p.m. Pizza Hut Pop-up
Thursday/Upper Deck Card
Album Giveaway
August 6 LOUISVILLE 7:05 p.m. fridaynightbash!
August 7 LOUISVILLE 7:05 p.m. TBA
August 8 INDIANAPOLIS 6:05 p.m. TBA
August 9 INDIANAPOLIS 7:05 p.m. Molson Monday
August 10 INDIANAPOLIS 7:05 p.m. Two for Tuesday
August 22 OMAHA 6:05 p.m. TBA
August 23 OMAHA 7:05 p.m. Molson Monday
August 24 OMAHA 7:05 p.m. Two for Tuesday
August 25 OMAHA 1:05 p.m. Business Person’s Day
continued on next page
Graham 01 10/5/01 1:26 PM Page 10

10 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 1-3 continued

August 26 IOWA 7:05 p.m. Pizza Hut Pop-up


Thursday/Polish Festival
Night
August 27 IOWA 7:05 p.m. fridaynightbash!
August 28 IOWA 2:05 p.m. TBA
August 29 IOWA 2:05 p.m. TBA
September 3 NASHVILLE 7:05 p.m. fridaynightbash!
September 4 NASHVILLE 7:05 p.m. Back to School Day
September 5 NASHVILLE 7:05 p.m. TBA
September 6 NASHVILLE 7:05 p.m. Fan Appreciation Day

Made-for-television events are yet another type of sport event that


deserves attention. With the increase in television rights fees, the intro-
duction of cable television, and the need for more sport programming,
made-for-television sport events have grown in popularity. These
events include the Goodwill Games, X Games, and Gravity Games,
and although they usually attract fewer on-site spectators, most of the
logistical elements remain the same. Historically, ABC’s Roone
Arledge was the first television producer to recognize sport as a spe-
cial-event medium and was determined that the television audience
would enjoy the event regardless of the outcome of the competition.
To achieve this goal, Arledge used cranes, blimps, and even heli-
copters to obtain dramatic views of the stadium, the campus, and the
surrounding countryside at an event. With handheld cameras for close-
up pictures of the spectators and players, and rifle-type microphones to
pick up local sounds, Arledge made the fans an integral part of the
sport event. Once the fans perceived themselves as potential perform-
ers, they began to display banners, run onto the field, and engage in
numerous other attention-getting and scene-stealing activities.
Other sport-related businesses such as health clubs and sporting
good companies also utilize special events as a means to attract and
retain members and to sell merchandise. Regardless of the type of
event, the goal remains to meet customers’ needs and to ultimately
retain or increase the patronage of the sport event and the corporate
sponsors.
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CHAPTER 1 UNDERSTANDING THE SPORT INDUSTRY 11

To remain viable, each generation of sport event marketers must


produce creative geniuses, such as the father of major league baseball
promotions, Bill Veeck; impresario George Preston Marshall; the
“Barnum of the Bushes” of minor league fame, Joe Engel; or master
Olympic marketer Peter Ueberroth. Gone are the days when teams
simply opened their gates and hoped that spectators would enter. For
teams in a slump, it is important to divert attention form a poor sea-
son by developing sport as a special event so that the score becomes
incidental to the overall entertainment value the fan receives.
For megaevents, large corporate sponsors such as Coca-Cola and
M&M Mars invest heavily in research to attain the greatest return on
their investment. Coca-Cola’s marketing strategy typically includes
painting the town red and white with ads, billboards, umbrellas, and
chairs, whereas M&M Mars lights up the surrounding landscape with
its product colors of orange, green, yellow, and brown. The planning
takes years, not days, of careful preparation on signage placement;
media buys; local, national, and international retail promotions; sales
incentive contests; on-site hospitality; travel; accommodations; and
ticketing to ensure success.
Research conducted by Professor Robert Rinehart, affiliated with
California State University at San Bernardino, states that the Super
Bowl is a “modern ritual of pilgrimage in which people attend to
reunite with their friends and experience the event in concert with
others of similar interest.” In fact, Rinehart found that individuals
attend the game “to be seen, to enjoy the hoopla, to support the team,
and to continue a ritual.” Similar research conducted by Lisa Delpy
Neirotti on the Olympic Games identified the “party atmosphere” as
a strong motivator to attend the Games. For many, this sport event
experience is a recurring life-shaping experience.
Sport event producers, in conjunction with their corporate spon-
sors, are beginning to create all-day interactive programming for con-
sumers. The ATP Tour Fan-Feast, for example, is an all-day sideshow
that consumers participate in before, during, and after the main
event. Each activity is designed to highlight a sponsor’s product or
service in a playful environment. Kodak, therefore, hosts the Kodak
Korner where fans get pictures taken with cutouts of tour players,
Sega premieres its “Electronic Tennis” video game, and Rolex times
fans’ tennis serves. As planning proceeds for these events, the organ-
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12 THE ULTIMATE GUIDE TO SPORTS MARKETING

izer must segment each market to meet consumer and sponsor needs
and to achieve specific outcomes. This process requires research and
knowledge about the lifestyles of the guests and potential trends that
may be incorporated to encourage participation.

THE STARTING BLOCKS


The first step is perhaps the most difficult and challenging of any
career search or transition. While it is extremely difficult to enter the
sports industry at top-level positions, it is not impossible. The secret
is to create a plan and then work your plan until the time is right for
your career opportunity. If you are working full-time, seek opportu-
nities to volunteer at events during the weekends. Find out what
events your company may be sponsoring, and express interest in
helping out. Contact not-for-profit organizations, schools, clubs, and
professional event management firms. Ask them if you can volunteer
to help with a forthcoming sport event. Sport events such as profes-
sional All-Star games, championships, and golf and tennis tourna-
ments create a number of temporary positions. These events will not
only provide you with valuable experience but also assist you in
developing relationships that can lead to a career in sports.
Unfortunate but true, building a Rolodex is almost as important as
experience and education.
According to Stedman Graham:
Volunteering and learning from experts is your quickest way to
the top. We are not reinventing the wheel. The work that we are
doing and that is being accomplished has been done before.
Trial and error is the most dangerous and expensive form of
learning. You should consider interning or apprenticing with
an experienced professional prior to attempting to produce
your own sport events independently. A mentor can give you
the advice and guidance until you have the right skills and
training to go off on your own. These are essential to building a
strong base that will enable you to understand the business and
build a successful future for yourself and your family.
It is important, however, to select a mentoring organization care-
fully. To establish your relationship with the organization, send a letter
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CHAPTER 1 UNDERSTANDING THE SPORT INDUSTRY 13

of inquiry similar to that shown in Figure 1-4. Be sure to do your home-


work prior to sending any correspondence. Find out who is directly
responsible for coordinating volunteers or for organizing the overall
event. Jennifer Jordan-Lock, who served as the director of Press
Operations for the 1998 Goodwill Games and many other events, sug-
gests that you do not call the individual before you send the letter but
make your follow-up call on the date that you indicated in the letter.
This demonstrates your integrity and organizational skills.
Do not be disappointed if you are referred to someone else or even
turned down. Be persistent and continue searching for opportunities
until you establish the critical relationships necessary to succeed.
Never wait for the phone to ring; it is up to you to pick up and dial.

Figure 1-4 Sample Query Letter

Your Address
City, State, ZIP
Telephone
Facsimile
Date

Name
Title
Organization Name
Address
City, State, ZIP

Dear (Mr./Ms.):

Your forthcoming sport event is of great interest to me. I am writing to


volunteer my services to assist you with any aspect of this activity where I
might be of use.

My résumé is included for your review. I am particularly interested in [X],


but am willing to help you in any area.

Good luck with this event. I will call you next Tuesday to discuss my possible
involvement.

Sincerely,

Name
Title
Graham 01 10/5/01 1:26 PM Page 14

14 THE ULTIMATE GUIDE TO SPORTS MARKETING

Although experience is one way to learn a skill, another is thor-


ough formal study. Over 140 colleges offer programs in sport man-
agement. A combination of both experience and formal study is ideal.

PERSONALITY, LIFESTYLE, AND WORK STYLE


CHARACTERISTICS YOU WILL NEED
With your letter, attach a résumé listing your direct or related experi-
ence to sport event projects. Sport promoter Charles Brotman says,
“Send me your résumé and it will be read. We never know when we
might need someone with your exact skills.” Although special skill
sets such as computer technology and graphic design are always in
demand, sport event professionals typically share several common
traits (see Figure 1-5). Use this figure only as a guide. It is not appli-
cable to every sport because each sport is different and therefore
requires unique skills.
Another trait common to many sport event managers is that they
are highly competitive. Some, though not all, were professional ath-
letes and understand the spirit of competition and good sportsman-
ship. All, however, understand the importance of competition in
raising the benchmark of quality with each event. The competitor
they face is themselves. Each time they accept a new sport event chal-
lenge, they seek to improve their chances of success and to refine their
performance.

EXPECTATIONS
Because of the high demand for sport-related jobs, starting salaries
are often low and most positions require internship or other experi-
ence. Refer to Figures 1-6 and 1-7. SFX, the world’s largest live sport
and entertainment company, currently offers two internship pro-
grams: one for college students earning course credits toward a
degree and another for people looking to break into the sport/enter-
tainment industry on a full-time basis. The first stage of the full-time
training program lasts five months, during which time the candidate
is paid an hourly wage in accordance with the federal minimum
wage, up to a maximum of 40 hours per week. No benefits are offered
at this time. At the end of this period, the candidate is reviewed. If
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CHAPTER 1 UNDERSTANDING THE SPORT INDUSTRY 15

Figure 1-5

Common Traits of Sport Event Managers


1. Comfortable with preparing and managing a checklist of activities
2. Projects a positive attitude
3. Can work independently or as a member of a team
4. Accurate and quick at details
5. Articulate on the telephone and in written and oral communication
6. Creative, flexible
7. Capable of working under extreme pressure for long hours
8. Good at working with all levels of people including volunteers
9. Effective at balancing multiple projects simultaneously
10. Excellent time manager
11. Effective negotiator
12. Finance- and budget-conscious
13. Possesses good typing, word processing, and other office skills
14. Leadership ability
15. Quick problem solver
16. Good motivator
17. Desire to learn and grow

acceptable, he or she progresses to the second stage, where for the


next seven months, the candidate earns $12.50 per hour up to 40
hours per week, plus full-time employee benefits. At the end of the
year, if the candidate’s work is positively assessed and there is a need,
a permanent position will be offered. Salary is negotiable, but an
average starting base is between $30,000 and 35,000.
Regardless of the starting salary, each of these positions can serve
as a catalyst for management to notice you quickly, thus accelerating
the possibility of your promotion. The successful sport event manager
often possesses strategic planning and management skills that owners
and supervisors seek when considering employees for advancement.
Do not be afraid to make suggestions for improvements or take on
additional responsibilities that will demonstrate your competencies.
When searching for a sport event job, you may often find that
these jobs are hidden within traditional career titles or job descrip-
tions (e.g., assistant athletic director or assistant director of commu-
Graham 01 10/5/01 1:26 PM Page 16

16 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 1-6

Sport Event Salary Guide


Salary Level Potential Annual Salary*
Entry level 0 to $18,000
University sport program $30,000
Minor league management $40,000
Major league management $100,000
Sales and marketing managers $50,000 and higher
Entrepreneurs (gross revenue) $500,000 and higher
*These figures may be adjusted upward with the addition of sales commissions, bonuses, and other
incentives.

Figure 1-7 Job Advertisements

DIVISION I UNIVERSITY
Position: Athletics Promotions/Home Events Manager
Duties: Develop and implement an ongoing promotional campaign for
intercollegiate athletics. Responsible for coordinating all aspects of home event
management including setup, staffing, game operations, game-day promotional
activities, and ticket consignment.
Requirements: Bachelor’s degree required. Experience in athletics promotions/
marketing at the collegiate level preferred. Excellent communication skills and
ability to work closely with constituent groups required.
Salary: Commensurate with experience ($25 to $35K). Send letter of application,
résumé, and names and phone numbers of references to…

2002 WINTER OLYMPICS—SPORTS PRODUCTION PROFESSIONALS


NEEDED
The Salt Lake Organizing Committee for the 2002 Olympic & Paralympic
Winter Games is currently seeking sport production professionals to manage
and/or assist venue teams, producing 78 live sporting events across 10 indoor
and outdoor venues.
Lead Producer/Management positions require a minimum of 3–5 years strong
sport event production. Coordinator positions require 2–3 years of sport
production/entertainment or events experience.
Salaries for the Sport Producer positions range from $50–65K and Coordinator
positions range $30–45K.
Please submit one résumé per position, including a cover letter explaining your
qualifications to…
Graham 01 10/5/01 1:26 PM Page 17

CHAPTER 1 UNDERSTANDING THE SPORT INDUSTRY 17

nity relations). The Baltimore Orioles baseball team management


includes special events as a multidisciplinary activity that utilizes the
skills of not only the public affairs department but also group sales
and stadium operations. The title of sport events coordinator, manag-
er, or director is relatively new. Therefore, you may need to inquire
within a variety of departments regarding which group has direct
responsibility for special event planning and management and then
identify the salary range for this position.
The marketing side of sport event management is more lucrative.
If you can bring in money for an organization through sponsorships,
advertisements, or ticket sales, you will be compensated accordingly.
Alan Rider, author of “The Mobile Stockbroker” (published in the
January 1993 issue of Home Office Computing), states that events-
oriented marketing professionals can earn more than $100,000 a year
and freelance planners can earn from $1,800 to $30,000 in fees for each
project. These entrepreneurs may bill a flat fee for all of their services
or a percentage of the overall cost (usually from 10 to 20 percent) for
larger, more complex events. The sport event planner becomes a gen-
eral contractor, a position similar to a homebuilder. Be forewarned,
however; since most sport events take place after normal working
hours, you will be required to spend nights and weekends on the job.
Now that you recognize the opportunities that are rapidly emerg-
ing in sport events, you are ready to begin the critical process of plan-
ning events. In Chapter 2, you will master the principles of planning
to further ensure the success of your sport event.

GAME HIGHLIGHTS
• Realize that the production of sport events is big business and
that there are a number of career opportunities available.
• Seek professional employment in this field by identifying men-
tors and preparing yourself through formal education as well as
practical experiences.
• Recognize that sport events are part of tourism and have a large
economic impact in the United States.
• Understand the demands of working in the sport event field and
the need for creativity, organization, and flexibility.
Graham 02 10/5/01 1:27 PM Page 19

C H
2
A P T E R

CRITICAL PLANNING TO
MASTER THE GAME
Beware of the big play: The 80-yard drive is better
than the 80-yard pass.
Fran Tarkenton

H OW DOES THE PRACTICE of developing winning plays


affect the outcome of the game, and how can you use
this same strategy to win with sport events?
Former Secretary of Defense Donald Rumsfeld said,
“Plan backwards. Set your objectives and trace back to see
how to achieve them, even through you may discover there
is no way to get there and you will have to adjust the objec-
tives.”
A wise business executive once advised, “Innovate or
evaporate.” The same is true for the emerging field of sport
events. Successful innovation hinges on the ability to create
solutions for strategic challenges using the best available
information.
Successful coaches invest significant time researching
the competition so that they can best prepare their players
for the game. Furthermore, the best coaching professionals

19

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Graham 02 10/5/01 1:27 PM Page 20

20 THE ULTIMATE GUIDE TO SPORTS MARKETING

recognize the strengths and weaknesses of their players and team


organization in order to design winning strategies.
In this section, we will present a model for analyzing an event’s
strengths, weaknesses, opportunities, and threats to help you design
a winning game plan for your event.

SWOT: THE STRENGTHS, WEAKNESSES,


OPPORTUNITIES, AND THREATS ANALYSIS
A crucial first step in preparing a game plan for a sport event is to
conduct a strengths, weaknesses, opportunities, and threats (SWOT)
analysis. The SWOT analysis is a detailed examination that helps you
look at internal aspects of your organization and sport event, along
with external variables that may affect your overall success.
The strengths and weaknesses part of the analysis allows you to
look at the internal resources available in planning your sport event.
Opportunities and threats provide you with crucial information for
assessing external situations, such as political issues that may direct-
ly or indirectly affect the plans you formulate.
Prior to conducting a SWOT analysis, you must be familiar with
every detail of the sport event, including budget, personnel, volun-
teers, time, date, location, target audience, and population size of the
community where the event takes place.
We will use a 5K road race scheduled for a Saturday morning in
April on the Mall in Washington, D.C., to examine the SWOT analy-
sis. Organized by the George Washington University Sport and Event
Management Forum, the event expects between 500 to 750 runners
from the metropolitan area. Proceeds will benefit the Forum scholar-
ship fund.

Strengths
What distinct competencies do you as a professional bring to the
event? What additional competencies can you identify within your
own organization? What other resources within the organization and
community can you identify that will strengthen your position in
planning this event?
Even if you do not have any specific sport event experience or for-
mal training, consider skills you have developed in previous posi-
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CHAPTER 2 CRITICAL PLANNING TO MASTER THE GAME 21

tions or the experience of organizing and managing a family. The


combination of skills, along with a knowledge and interest in sport,
certainly provides you with strengths that can help you to succeed in
producing your sport event.

Forum Strengths
• The Forum will provide plenty of experienced sport event man-
agers to work at the event and marketers to sell the event.
• The Federal Park Service will provide the security for a fee. They
are experienced in crowd control on the Mall and have worked
at various fun runs and rallies.
• Tents donated by a Forum board member will be erected to pro-
tect runners before and after the race from the sun or rain.
• Internal and external written communications are facilitated
through the use of e-mail and faxes. All promotional materials
are produced in-house with a university desktop publishing sys-
tem and a Web site created and hosted on a university server.
Use Figure 2-1 to identify the practical skills and abilities that you or
others in your organization may possess. Although your interpreta-
tion of these strengths is not an empirical science, the overall SWOT
analysis will help you to identify the strong traits your organization
possesses. Keep in mind that every sport event is distinct and may
require a varying amount of strengths to ensure success.

Weaknesses
Analyzing weaknesses as well as strengths is extremely important, as
these internal aspects can easily become a burden to your sport event
program. Convene a brief meeting among key staff and volunteers to
determine any weaknesses. Ask them to suggest internal areas that
are critically inadequate, that may be controlled and corrected by
training, or that require elimination before their weakness erodes
your entire organization. Elimination may mean that key staff or vol-
unteers must be reassigned or even released. Remember, the list of
weaknesses can be as long as the list of strengths, but they must be
recognized and dealt with efficiently.
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22 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 2-1

Strengths Analysis Checklist


Assess each skill by writing the term strong, average, or weak in the
Assessment column.
Skill Assessment
Financial Planning
Budgeting, accounting, management
Human Resource Management
Recruiting, training, supervising, motivating
staff and volunteers
Safety, Security, Risk Management
Admissions, venue grounds, spectators, players,
personnel
Hospitality
Invitation design and production, amenities,
coordination of logistics, hosting activities
Food and Beverage
Negotiations, quality, quantity, contract and price
Sales and Marketing
Prospecting, selling, closing, servicing
Writing
Correspondence, promotional copy, internal
memoranda, newsletters, trade publication
articles, media releases, follow-ups
Leadership Ability
Persuasion, motivation, listening,
problem-solving skills
Other skills or strengths:

Forum Weaknesses
• The Forum does not have any start-up capital, so it must rely on
in-kind donations until cash is raised from sponsorships.
• Staff time is limited for this project, so the organization is heavi-
ly based on volunteers.
• The race course is on federal land. Since no financial transactions
can take place on federal land, no on-site registrations can be
accepted. An alternative site must be arranged for the day of
registration.
Graham 02 10/5/01 1:27 PM Page 23

CHAPTER 2 CRITICAL PLANNING TO MASTER THE GAME 23

• No concessions can be sold because the event is held on federal


land.
Use Figure 2-2 to identify the weaknesses that you or others in your
organization may possess.
By concentrating on strengths and weaknesses, you are shoring
up your organization to best handle the opportunities and threats
from external variables. Getting your ship in tip-top shape at the
planning stage is critical to survival on the restless seas ahead.
The external variables that may affect your sport event include
both opportunities (positive elements that need to be exploited and
searched out) and threats (negatives that should be confronted or
avoided). Less controllable than internal variables, opportunities and
threats nevertheless require careful analysis to ensure a successfully
planned sport event.

Opportunities
The opportunities that present themselves may increase your rev-
enues, generate greater positive public relations, and provide other
benefits for your organization.

Figure 2-2

Weaknesses Analysis Checklist


Assess each weakness by writing the term critical, controllable, or eliminate in
the assessment column.
Weakness Assessment
Disagreements among key staff and/or volunteers
Personality conflicts among staff and/or volunteers
Lack of trained, experienced personnel and/or volunteers
Short planning time
Funding problems
Facility shortage or inadequacies
Other weaknesses:
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24 THE ULTIMATE GUIDE TO SPORTS MARKETING

Forum Opportunities
• A large registration is expected at this early time of the year
because athletes want to participate in this short-distance 5K
race as a warm-up for longer-distance races later in the season.
• Washington, D.C., has a strong base of recreational runners who
will support the event.
• The event is held during a busy tourist weekend, so many peo-
ple will be near the mall area, creating the high visibility that
sponsors find attractive.
• The president of the university has agreed to be the honorary
chair for the event and run in the race.
• Students have a stake in the proceeds, so they will register and
encourage their peers to run as well.
Use Figure 2-3 to identify the opportunities for your event. Characterize
these opportunities as probable if there is sufficient evidence to deter-
mine they are likely to occur. Define them as developable if an oppor-
tunity, such as media coverage, is not yet firm but highly likely to occur.
Finally, determine whether an opportunity requires control. If the

Figure 2-3

Opportunities Analysis Checklist


Assess each opportunity for its value by writing the term probable,
developable, or requires control in the assessment column.
Opportunity Assessment
Historical activity—centennial, sesquicentennial,
bicentennial, quincentennial
Prospective partners or volunteers
Prospective sponsors
Other major events prior to or following yours.
Activities that could increase your attendance
Tourism activities in the area of your event.
Scenic, historical, or cultural attractions
Friendly business community
Friendly governmental agencies
Other opportunities:
Graham 02 10/5/01 1:27 PM Page 25

CHAPTER 2 CRITICAL PLANNING TO MASTER THE GAME 25

opportunity you have identified supports your goals and objectives,


develop it. However, if it does not entirely support your end result,
determine ways to control it. For example, a tourist-related activity such
as a major music festival may be scheduled on the same date as your
event. Control this activity to the best of your ability. Otherwise, this
scheduling conflict could shift from an opportunity to a threat. A solu-
tion is to hold your event prior to the music festival so your participants
also can enjoy the festival. Sponsors will get a bonus as well.

Threats
From political unrest to inclement weather, threats are real occur-
rences that may jeopardize the overall success of your sport event.
Football coaches have long preached that “a good offense is your best
defense.” By recognizing as many potential threats as possible, you
increase your chances for success by identifying any factors that may
impede that success.
To determine the universe of threats that surrounds your sport
event, bring together managers from various parts of your event-
planning process. This includes risk management, volunteers,
marketing, transportation, ticketing, concessions, and all other critical
departments. Ask all managers to list any potential threats within
their department and to identify any threats that may affect the event
as a whole.

Forum Threats
• Inclement weather is probable at this time of year.
• A bicycle race scheduled on the same day may attract athletes
away from the 5K race.
• Students have threatened to rally at the event in protest of
tuition increases.
• Local police, fire, and rescue teams may not have enough human
resources for both your event and a competing one.
• A new ordinance is being discussed within the city council that
will require all events to pay for police services.

Figure 2-4 is an assessment guide to help you identify potential threats


and assess your vulnerability. All threats that are listed in Figure 2-4
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26 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 2-4

Threats Analysis Checklist


Assess each threat by writing the term serious, monitor further, or requires
coverage in the assessment column.
Threat Assessment
Political unrest
Economic recession
Negative environmental impact
Advocacy group protest
Violence
Crime
Trade union disagreements or strikes
Acts of God
Weather or other uncontrollable occurrences
Other threat:

can be potentially controlled. However, it is essential that you assess


the vulnerability of your sport event within its context. For example,
political unrest may be potentially serious but requires further moni-
toring. Acts of God cannot be controlled, but they can be monitored
and should be covered by insurance to reduce your financial exposure.

CREATING AND WORKING YOUR PLAN


Too many organizations spend countless hours developing plans that
are then filed away for posterity. Successful sport event management
and marketing professionals use their plans as a critical tool to sculpt
their success.
A variety of event-related software packages are available to
assist in project management, financial and data analysis, develop-
ment of diagrams, site plans, and tournament scheduling.
Tournament Builders by SportsMVP.com, for example, not only facil-
itates the scheduling of tournaments offline but allows users to post
the schedule and update results online so that participants, signifi-
cant others, and media can remain current from anywhere anytime.
According to Jan Moxley, author and publisher of The A C [Advance
Coordination] Manual (Interactive Communications, 1996), “The prob-
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CHAPTER 2 CRITICAL PLANNING TO MASTER THE GAME 27

lem with most of the existing software is that it lacks detail and the
ability to integrate a number of events and activities, forcing organiz-
ers to use a variety of programs.”
Most of the larger sports events and organizations have created
proprietary programs such as the one described by Jim Birrell, vice
president of Operations for Turner Sports and the Goodwill Games:
With the 2001 Games being held in Brisbane, Australia, and 900
freelance broadcast personnel required to produce 45 hours of
coverage, it is not feasible to bring all the broadcasters over
there. Therefore, an international talent search and database
management system has been created through the Internet,
whereupon once a freelance broadcaster has been identified
and terms agreed upon, he or she completes an extensive form
that is posted on the Web. Besides personal contact information,
questions included in the form include departure and arrival
dates and locations, hotel selection, current employment status.
With a click of a button, this information is automatically
shared with all affected departments. The housing coordinator
knows that one less room is in her block for the Holiday Inn; the
travel agent knows to book a certain flight, which is then elec-
tronically ticketed, which triggers the flight itinerary to be post-
ed on the Web site for the employee to check; the personnel
office sees that this person is not an employee of Turner and
sends the appropriate forms or contract through e-mail, which
are then resubmitted via the Internet with an authorized elec-
tronic signature. This not only saves time but thousands of dol-
lars in overnight international shipping.
The Salt Lake Olympic Organizing Committee is using a similar sys-
tem for volunteer registration, while Primavera project management
software is being used by the Organizing Committee to track the 46
functional areas, 288 projects, and 4,343 activities that need to be com-
pleted to stage the Olympic and Paralympic Winter Games. Some of
the commercial companies entering this field are View Point
Technology in Canada, MSL in Spain, and Eurotech in France.
Furthermore, Frank Supovitz, group vice president, Events and
Entertainment, for the National Hockey League, explains the system
he uses to organize the many events for which he is responsible:
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28 THE ULTIMATE GUIDE TO SPORTS MARKETING

Each event is completely different and therefore requires a


separate strategic plan. However, for multi-events occurring
within the same time period (such as the NHL All-Star Game
that includes a Heroes of Hockey [Alumni] Game, a skills
competition, various receptions, and the All-Star Game itself,
I create individual production schedules and then incorporate
them into a master planning document to create synergy
between each project.
A practical approach to organization is to keep your master plan in a
three-ring binder. You will see how useful this becomes when you
begin to accumulate schedules, contacts, logistics, and other impor-
tant information. The binder keeps them in one place where the
information can be updated easily. As the event draws near and
schedules become final, this binder becomes your event operations
book. Copies of your plan book or portions of it should be given to
everyone involved with the sport event to keep them apprised of the
most current information.
Regardless of what system you use, the components in Figure 2-5
should be part of any sport event plan.

Figure 2-5

Sport Event Plan


Developing a Sport Event Checklist
1. Determine your projected revenues based on venue capacity and historical
data. Then develop the budget and an expense plan utilizing these
projections. Working realistically within this budget will cause much
less stress.
2. Determine the time frame for preproduction, production, and postproduction
activities. Do not be overanxious and do things that require redoing later or
additional work and expense. For example, ticket sales are accompanied by
advertisements and promotions. If you start your campaign too early, before
the public is ready to purchase tickets, you will be expending energy
unnecessarily. In addition, order brochures and promotional materials in
adequate quantities. Reprinting may double the original cost.
3. Organize your time by first determining what tasks must be performed in
sequential order, specifying the time and date. This is essential when
licenses and permits are required. Special application deadlines and
continued on next page
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CHAPTER 2 CRITICAL PLANNING TO MASTER THE GAME 29

Figure 2-5 continued

procedures may be imposed. Solicitation of corporate and foundation


money is also sensitive to time considerations because of budget cycles. Do
your homework and learn when companies develop their budgets, when
their fiscal year ends, and when foundations consider proposals.
4. Plan backward. List each task that needs to be done and decide on deadline
dates. Figure out the steps required to complete each task and the time
needed. If you want people to respond to your invitation by a certain date,
calculate the time for invitation design and printing, labeling, mailing,
receipt, and response. Subtract this time from your deadline date and you
know when to begin this task.
5. Allow for extra time (by providing sufficient padding to your schedule) to
handle unforeseeable delays.
6. Confirm and verify your plans with everyone involved in the activity such
as vendors, key staff, volunteer leaders, and officials. We recommend a
weekly meeting with all staff and a monthly meeting with everyone
involved. Mailing an internal newsletter leading up to the event is not only
informative but also keeps everyone motivated and on track.
7. Determine what protocol is required that may affect your timing and
sequence of events. The International Olympic Committee (IOC) requires
that invitations to the Olympic Games be mailed exactly one year prior to
the competition.
8. Determine and incorporate into your planning any specific league or
federation protocols or regulations. The National Collegiate Athletic
Association (NCAA), for example, allows only a limited amount of alcohol-
related advertising. Professional leagues dictate a specific time frame for
television commercials in pregame, halftime, and postgame shows.
Regulations on the number, size, and type of venue signage is also common.
9. List all activities for which each department is responsible in a separate
schedule of events. Then incorporate these individual activities into the
master plan. Coca-Cola developed a comprehensive project management
computer program that listed and tracked progress on all activities associated
with and leading to the 1996 Olympic Games in Atlanta, Georgia.
10. Include in your plan book a master contact form listing the names and
other critical numbers (work, home, e-mail, fax, mobile telephone, beeper)
of each member of your sport event management team.
11. Allow for contingency decision making in your plan. If the event is called
because of rain, how does this affect your plan? Downhill skiing is always
programmed on the first day of the Winter Olympic Games in case of
weather delays.
12. Make your plan in the smallest workable increment. Use a maximum time
window of 15 minutes. You must plan televised sport events in second-by-
second increments (see Chapter 8).
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30 THE ULTIMATE GUIDE TO SPORTS MARKETING

PLAN FOR UNIQUENESS


When Mike Dyer, vice president of New Development for the NBA,
was working as the executive director of the 1994 St. Louis Olympic
Sports Festival, he realized the importance of thinking outside the box:
Traditionally, organizing committees held elaborate, high-
priced opening ceremonies in stadiums that cost thousands of
dollars to produce, resulting in little or no profit. Considering
our limited budget and the need to spearhead the Festival in
the community, we decided to hold the opening ceremony
under the famed St. Louis arch and invited the public to
attend for free. We ended up attracting 80,000 people, and the
excitement from this opening event was contagious, resulting
in thousands of ticket sales for the remainder of events.
As expressed by Dyer, “Although it is important to evaluate previous
events, don’t be afraid to do things differently. Every event can evolve
and change.” It is also important not to let an event go stale. For
example, the NBA decided to give the All-Star “slam dunk” contest a
rest for two years. When they brought it back, both the players and
audience were more enthusiastic.
Another example of bucking tradition is the idea of the Amateur
Athletic Union to hold the opening ceremonies of the Junior
Olympics in the middle of the Games when the majority of partici-
pants are attending the event, rather at the beginning.

INTERNATIONAL EVENT PLANNING


Two of the major challenges of organizing events abroad are distance
and communication. “You cannot just jump on the next plane and con-
duct a site visit in Japan like you can do if the event is in the United
States,” explains Mike Dyer, former vice president of the NBA Events
and Attractions Group. If you are traveling thousands of miles, you
better make plans to visit every hotel and venue and to meet with all
the essential people. You must rely heavily on the people on the
ground to assist with these visits and meetings. It is also essential to
understand how business is done in the country where the event will
take place. In Asia, for example, the people are very efficient and
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CHAPTER 2 CRITICAL PLANNING TO MASTER THE GAME 31

detail-oriented. Expect to attend meeting after meeting. In other coun-


tries a “mañana” attitude may be more prevalent. With the three-hour
lunches in Spain, you may feel like nothing will get done.
Regardless of the cultural differences, it is vital to follow up every
meeting in writing and to make sure documents are signed and
exchanged so each party is fully aware of respective responsibilities.
If someone in Asia says “we’ll check,” beware. Since it is culturally
rude to say “no,” most likely “we’ll check” means “no.” Upon writ-
ten confirmation, you may find that your foreign colleagues agreed
with very little of what you thought they agreed with.
The issues of gender and seniority may also create problems for
events organizers. Even high-level females may find it difficult work-
ing with men in some countries. Knowing simple protocol such as
how to greet people will go a long way when building relationships
in foreign countries.
It is also important for sport event managers to realize that most
arenas overseas are not like those in the United States. They typically
do not have concession areas and locker rooms, and if they do, they
are small. Few arenas are air-conditioned or have video scoreboards,
and smoking is also still permitted.

CONDUCTING YOUR PLANNING MEETINGS


When planning meetings with staff, volunteers, sponsors, or service
providers, always remember that everyone’s time is valuable and that
the more efficiently the meeting is run, the more likely that people
will participate and the outcome will be a success. One of the most
often heard concerns expressed by volunteers is that the organizers
are wasting their time by having them just sit around and do nothing.
If you call a volunteer meeting or training session, make sure that you
begin on time and that the material is ready and presented in an
orderly fashion. Use Figure 2-6 as a guide to meeting planning.

CELEBRATING SUCCESS AND CONTROLLING STRESS


To keep the motivation and spirits high among your event staff,
build into your planning cycle a series of miniature benchmark cele-
brations that allow you to recognize the accomplishments of your
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32 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 2-6

How to Win a Gold Medal at Your Team Meeting


Step 1: Announce the meeting well in advance to allow each team member to
prepare properly. Request that all team members submit with their
attendance confirmation forms any agenda items they want to cover.
Circulate an agenda before the meeting.
Step 2: Post a welcome message with directions to the appropriate meeting
room. Whenever possible provide light refreshments to offer
hospitality and energize the participants.
Step 3: Use a flip chart, and appoint a scribe to stand by the flip chart and
write down the key points covered during the meeting.
Step 4: Always start the meeting on time even if all the participants have not
arrived. Latecomers will probably be on time for the next meeting.
Step 5: Review the agenda, ask for any additional items, and then ask that the
agenda be approved.
Step 6: Allow each member to contribute to the discussion and encourage not
only agreement but also positive dissonance.
Step 7: Keep the meeting on schedule. Ask individual team members how
much time they will need to present their agenda item. Record their
response and use it as a benchmark to keep the meeting on schedule.
Step 8: Alert your team members when only 15 minutes remain until the end
of the scheduled meeting. Give them the option of ending on time,
continuing the discussion at the next meeting, or postponing the
discussion until needed.
Step 9: End the meeting precisely on time but first recognize the participants
for their productivity. Your team members will appreciate your
promptness and work even harder next time to help you facilitate the
meeting when they know that you respect their time.
Step 10: Analyze the positive and negative aspects of the meeting by asking
your team members to list what was successful and what could be
improved upon in the future.

team members (e.g., the signing of the first sponsor, the ground-
breaking for venue construction, 100 days to the event). Every suc-
cessful plan will include many opportunities to celebrate the
achievements you and your team have worked hard to attain. Those
who worked on the 1984 Los Angeles Olympic Games remember
how Peter Ueberoth constantly rallied the troops. When spirits start-
ed to sag, he found reasons to celebrate, and this certainly con-
tributed to the success of the Games. Similarly, the Atlanta Olympic
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CHAPTER 2 CRITICAL PLANNING TO MASTER THE GAME 33

Committee scheduled brown-bag lunches for employees on the first


Friday of every month up to the beginning of the Games and invited
guest speakers to the lunches, including many former Olympians
who shared their memories of Olympic participation.
To absolutely guarantee your success in planning your sport
event, use the simple formula given in Figure 2-7 to stay on schedule
and to remain focused on the goal.
A meeting planner once remarked that more than 3,000 separate
decisions are made about any meeting from the beginning of the plan-
ning cycle through the management of the event. In the sport event
field, this number could easily triple because of the complexity of com-
bining protocols, expectations of different customers (sponsors, event
owner, participants, media, spectators), multiple venue sites, various
ethnic cultures and populations, and your own creativity.
Indeed, both the left side and right side of the brain receive a
tremendous workout as you plan your sport event. The creative as
well as the logical side is essential to your success. Therefore, details,
your ability to communicate accurately and freely, and your willing-
ness to gain access to expert advice will certainly increase your
chance for success as you plan your sport event.
It is natural to feel tension and stress when embarking on a new
mission. However, allowing your natural tension to turn into stress
will be extremely counterproductive to your goal. When feeling
stress, try to identify what part of the planning process is causing the
stress. You may find that you are not adequately prepared to handle
a specialized area such as protocol or financial management.
Once you have identified the cause of your stress, you can reme-
dy this discomfort by delegating the task to an expert on your team
or source it out. Remember that stress is not productive to long-term
achievement of your goal. Deal with it quickly and efficiently so you
can get on with planning your successful sport event. Keeping a sense
of humor is also vital.

Figure 2-7

The Not-So-Secret Sport Event Formula for Success


Details  Communication  Expert Input  Stress  Success
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34 THE ULTIMATE GUIDE TO SPORTS MARKETING

PLANNING FOR CONTINGENCIES


Despite your most careful planning, an act of God or other cata-
strophic event may occur. If you have planned correctly and profes-
sionally, you will be able to handle these developments with a
minimum amount of concern from your guests. The following are
four examples of potential challenges to your planning program and
the contingencies you might develop to deal with them.

Loss of Key Personnel


The loss of a senior official in your organization could be devastating
to operations and staff morale. One way to plan for this contingency
is to encourage your team to job share.
Request that employees learn each others’ jobs and set aside a
specific time each week to train one another. During the 1990
Goodwill Games in Seattle, a number of key personnel left at a crucial
time in the competition. Several volunteers who had demonstrated
leadership potential in the early stages of the games were promoted
to senior management positions. Their previous cross-training
enabled them to finish the project successfully.
The 2002 Salt Lake Olympic Organizing Committee has imple-
mented an eight-point retention and reward program that motivates
their employees to stay throughout the Games. This includes a com-
pensation package that continues to pay out for a certain period of
time after the completion of the Games based on the number of years
employed. This transition pay is only paid to those individuals who
remain with the organization until their end date, as stipulated in the
hiring letter.
Similarly, plans need to be made to retain volunteers throughout
an event. Based on the experience of Jeannine Hunte, a sport man-
agement consultant, only volunteers who have worked three match-
es before the semifinals are allowed to work the final match at the
Legg Mason Tennis Classic in Washington, D.C.

Weather Emergency
Your corporate golf tournament in Kawaii is canceled because of a
hurricane. A snow emergency prevents your 70,000 spectators from
traveling to your championship basketball tournament. Flooding pol-
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CHAPTER 2 CRITICAL PLANNING TO MASTER THE GAME 35

lutes the city water system, and health officials close all public ven-
ues, forcing you to cancel or postpone your gymnastic meet. Advance
planning is important in handling these crises. Did you purchase can-
cellation insurance to protect your investment? Did you have a strat-
egy to notify the participants of an alternative plan that is equal to or
exceeds the value of the scheduled tournament? Playing the “what
if?” game can help you plan contingencies and prepare for unexpect-
ed disasters.

Damage Control: Pool Cooling System Fails


According to Jack Kelly, former executive director of the 1986 U.S.
Olympic Festival in Houston, Texas, and current executive director of
Bowling Proprietors Association of America, “I remember when, two
hours before the swim competition in Houston was to begin, I received
word that the pool cooling system was not functioning.” Thinking
quickly, Kelly called every ice company in the area to contribute ice
blocks to cool down the pool so the meet could start on time.

Power Outage
A D.C. United Major League Soccer Game had to be called at halftime
when the lights would not turn on at RFK Stadium in Washington,
D.C. Once the stadium was evacuated and the power turned off, the
lights were fixed in 10 minutes. An electrical storm knocked a fuse
out, but electricity could not be cut to check the problem while peo-
ple were in the stadium. Now it is standard operating procedure to
turn the lights on before any event even though this costs money.

SPORT EVENT PLANNING: SUMMARY


As Yogi Berra once said “It ain’t over ’til it’s over.” Berra was not only
a championship baseball player but also a great strategic thinker. He
understood that planning has neither a beginning nor an end; it is a
continuous series of event itself.
As a professional sport event planner, you must constantly be
planning to improve your events through a thorough evaluation
process. This process begins with your first meeting and continues
long after the event has concluded and you begin to plan the next
event.
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36 THE ULTIMATE GUIDE TO SPORTS MARKETING

By analyzing strengths, weaknesses, opportunities, and threats


(SWOT), you can take a critical look at the universe within the your
organization and around your event.
As you develop your plan, you will achieve success through a
series of team meetings. If these meetings are organized for maxi-
mum effectiveness, you will move efficiently toward your strategic
sport event goal. And if you celebrate even small successes, you will
raise the self-confidence of your team and keep spirits high.
Most important, there is no challenge that cannot be overcome
with proper contingency planning. Practice damage control as you
develop your plan to ensure that small problems do not have over-
whelming consequence. Like sport itself, practice makes perfect—or
at least minimizes risks and injuries.
The famous architect Mies van der Rohe reportedly said, “God is
in the details,” and so it is with this first critical process of producing
a successful sport event. Attend to the most minute detail, communi-
cate freely, insist on expert input, and resist stress to achieve the sport
event for which you have planned.
Planning successful sport events is equal parts art and science. In
Chapter 3, you will find that designing, planning, and controlling
event logistics is a not-so-precise science that will greatly influence
the outcome of the artwork for your sport event.

GAME HIGHLIGHTS
• Conduct a SWOT analysis to determine the internal and external
variable that may affect your event.
• Organize your meetings to reflect the success you plan to
achieve with your event. After all, a good meeting is an event.
• Identify opportunities to celebrate success that will motivate
staff and reduce stress.
• Plan for every possible contingency and practice damage control
to prevent a minor problem from becoming a major catastrophe.
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CHAPTER 2 CRITICAL PLANNING TO MASTER THE GAME 37

RESOURCES FOR EVENT PLANNING SOFTWARE


Event Command by Actis Inc. (www.actisinc.com)
Event Planner Plus by Certain Software (www.certain.com)
Meeting Pro by Peopleware (www.peopleware.com)
Summit Pro and Summit Light by MIE Software
(www.miesoftware.com)
Room Viewer by TimeSaver Software (www.timesaver.com)
Tournament Builder by SportsMVP.com (www.sportsMVP.com)
Advance Coordination Manual and CD-ROM by Zone Interactive
(www.zoneinteractive.com)
Microsoft Project 2000 (www.microsoft.com)
Primavera Software (www.primavera.com)
Graham 03 10/5/01 1:27 PM Page 39

C H
3
A P T E R

DESIGNING, PLANNING,
AND CONTROLLING
EVENT LOGISTICS
You can’t think and hit at the same time.
Yogi Berra

W HY IS ATTENTION TO THE MOST MINUTE detail critical to


your success in planning sport events, and how can
you make certain that every aspect of your event is careful-
ly designed to satisfy the needs of every constituency
group?

ASKING THE RIGHT QUESTIONS


Barry Silberman, former president of Entertainment and
Development for Washington Sports and Entertainment
and currently president/CEO of Estadios Panamericanos,
offers this important advice in producing a sport event:
“Gather as much information as possible. You can never ask
too many questions, and if you assume that you know what
your client is talking about, you may find yourself in big
39

Copyright 2001 The McGraw-Hill Companies, Inc. Click Here for Terms of Use.
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40 THE ULTIMATE GUIDE TO SPORTS MARKETING

trouble.” Silberman, for example, assumed that the soil used for bull
riding and tractor pulls at the USAir Arena would be suitable for the
Spanish Riding School of Vienna. Unfortunately, he did not find out
until the last minute that a different loam quality or pebble content
was required for this horse event. The only solution was for staff
members to scramble and pick pebbles from the soil.
Likewise, event organizers should be aware that there is special
salt-free sand used for indoor beach volleyball events held in arenas
sometimes used for hockey and skating events. The salt in regular
sand could affect the ice-making ability of the venue.
Silberman also emphasizes the need to ask the right questions.
For indoor tractor pulls, it is important to find out the weight and
amount of vibration that will be placed on the floor and investigate
whether it will ruin any ice-making equipment under the floor. When
you are asked to produce an event that you have not done before, the
first thing you should do is call someone who has. You can also ask
the appropriate sport governing body for recommendations.

LOGISTICS
Of the many different sport events that Barry Silberman has pro-
duced, he believes that events that attract a great many teams, exten-
sive media, and on-site hospitality, such as the NCAA Basketball
Tournament, are the most complex to host. Silberman considered the
NCAA to be a “great client,” however, because it knew what it want-
ed and had specific guidelines to achieve this. Throughout the event,
everyone knew what they had to do, and people from the NCAA
monitored all activities. In all sport events, logistics are a critical con-
sideration and a determining factor in the success of the sport event.
Often the most brilliant idea has gone sour owing to poor logisti-
cal planning. How many times have you attended a function with a
magnificently displayed buffet only to stand in line for what seemed
like hours because only one line was prepared rather than two? A
good rule of thumb is one food or beverage line for every 75 to 100
people.
The term logistics is derived from the Greek logistikos (the science
of calculating) and logos, which means reason. Logistics, in modern
usage, also means handling the details of any operation. To combine
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CHAPTER 3 DESIGNING, PLANNING, AND CONTROLLING EVENT LOGISTICS 41

the two, we might ask the question, can the sport event manager
direct his or her creativity into a reasonable path that will produce an
effective event? The answer should be yes if you are to ensure safety,
respect the public trust placed in you, and meet the goals and objec-
tives established for the event.
One way to prepare for success is to create a logistical plan. The
level of logistical planning is directly influenced by the conditions
surrounding the event (e.g., number of different sports and venues,
level of competition).
In this chapter, we examine all dimensions of logistical planning
for sport events. Appendix 2 has samples of a production schedule
and a master plan showing how logistics function within the frame-
work of your sport event.
Figure 3-1 offers a checklist of some of the conditions that must
first be determined before you can begin your logistical planning. Use
this checklist as a reminder during your planning.

Figure 3-1

Sport Event Logistical Conditions Checklist


_____ What is the purpose of the event—raise money, generate media
attention, product marketing, customer entertainment?
_____ How large is the event—number of participants, spectators, media, and
VIPs?
_____ What is the budget?
_____ Will the event be held indoors, outdoors, or both?
_____ How many venues will be used and how far apart are they?
_____ Are outside vendors required? If so, which ones and how will they be
selected?
_____ What are the requirements of the facility and do they meet Americans
with Disabilities Act (ADA) and health department standards?
_____ Is there a need to build or renovate the venue?
_____ How much time is required for setup and takedown of the sport event?
_____ Will food and beverages be served, and if so, what permits are required?
_____ What type of food is appropriate to serve?
_____ Will food and beverage be dispensed free, paid by prepurchased ticket,
or paid with cash at the event?
continued on next page
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42 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 3-1 continued

_____ How many guests do you guarantee for?


_____ What type of entertainment, if any, will be provided?
_____ Are ceremonies scheduled?
_____ Will the athletes, spectators, and media arrive and depart by private
automobile, private motorcoach, or public transportation (type of
transportation, itinerary, and special needs)?
_____ How will staff and volunteers arrive and depart from their assigned
locations?
_____ What housing requirements are needed for athletes, media, VIPs, and
spectators?
_____ Is enough housing available to accommodate all contingencies?
_____ What are the sanitation needs (portable toilets guideline: 1 per 100 to 200
people)?
_____ Will the audience include a large segment requiring special
accommodation (e.g., disabled, senior citizens, multilingual speakers)?
_____ Will the spectators pay to attend, receive free admission, or have a
combination of admissions?
_____ What is the appropriate entrance or registration fee?
_____ How will the tickets be sold and distributed?
_____ What is the seating configuration—stadium, thrust (3/4 round wherein
the audience sits on three sides of the stage), auditorium, or a
combination of seating designs?
_____ Is general, reserved, or festival seating ordered for the event?
_____ How many staff and/or volunteers does your event require? (Warning:
Experience event managers say that 20 percent of volunteers typically
do not appear the day of the event.)
_____ What additional training will be required for staff and volunteers?
_____ Should special outfitting be ordered for event staff and volunteers?
_____ How will uniforms be distributed?
_____ How much storage area is required (equipment, merchandise, etc.)?
_____ Does the event have a high-risk factor (e.g., a pyrotechnics show) and is
the audience involved in the performance in any way?
_____ Has the necessary insurance been purchased?
_____ What are first aid, police, and crowd control requirements?
_____ Is increased security needed (e.g., teams with intense rivalry, hot
weather, etc.)?
_____ How will the program be promoted? Is this an annual event or a
hallmark (usually a nonrecurring, historical milestone) event?
continued on next page
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CHAPTER 3 DESIGNING, PLANNING, AND CONTROLLING EVENT LOGISTICS 43

Figure 3-1 continued

_____ Will merchandise be sold? Will the merchandise be licensed? Who will
enforce trademark protection?
_____ Will you need a sponsor to help fund or market your event?
_____ Are there conflicts of interests among corporate sponsors?
_____ Are awards needed? When and where will they be presented? What
type of awards should be ordered?
_____ Will the event be broadcast?
_____ What events precede and follow (bookend) your principal program? Are
there auxiliary events before and after the program as well as during the
actual event?

Once you have answered these questions, you will have a better
idea of your logistical and operational requirements and can begin to
develop an organizational structure. An organizational structure
identifies the direct order of report so you can effectively plan and
manage all the details of your event. Key positions and external con-
tacts should also be identified to support the organizational structure
(see Figures 3-2 and 3-3). Dennis Gann, executive director of the Sioux
City Convention Center and Auditorium Tourism Bureau, recom-
mends that when you organize your sport event committee, no more
than three people should have final decision-making power. A good
mix is to have one person responsible for legal and government enti-
ties, one for finance, and another for logistics. The purpose of the
event also determines the level of logistics. For instance, charity sport
events are typically more concerned with the bottom line and do not
plan for as many amenities as the high-profile sport event geared to
attract media attention.
Depending on the results of your SWOT analysis and the scope of
your event, outsourcing certain responsibilities may be a prudent
decision.

WORKING WITH VENDORS


As a sport event spectator, do you ever notice who provided the tents,
portable toilets, grandstands, and electricity, or who printed the pro-
grams, manufactured the volunteer uniforms, removed the trash, and
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44 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 3-2

The Organizational Chart


This chart is an example of the management personnel involved in planning
and operating a sport event.

Event Manager

Event Assistant Manager

Marketing Sales Operations Legal Financial

Advertising Direct Grounds Contracts/ Budget


Mail Licenses

Risk
Merchandise Payables/
Media Buildings Management/
Licensing Insurance Receivables

Public Other
Tickets Personnel Investments
Relations Utilities

Communi- Auditing/
Hospitality
cations Accounting

secured the grounds? For the majority of people, the answer to this
question is no. As a sport event manager, however, these are some of
the most critical decisions that often determine the overall success of
an event.
The first step in the vendor selection process is to determine the
various categories of goods and services required for each event.
According to Jeanne Taylor, championship director for the 2000 U.S.
Senior Open and numerous other golf championships, over 30 sepa-
rate vendor categories are required to produce a professional golf
tournament. In addition to the products and services listed above,
events frequently contract out for graphic designers, concessionaires,
office furniture, signs, courtesy cars, scoring system, tent caterer,
hotels, generators/air conditioning, trailers, photography, copiers,
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CHAPTER 3 DESIGNING, PLANNING, AND CONTROLLING EVENT LOGISTICS 45

Figure 3-3

Key Personnel and Important Contacts


Each person in charge is a critical link to the future cohesion of your entire
event.
• Admission supervisor • International officials
• Athletic trainers • Marketing director
• Box office supervisor • Media center director
• Buildings supervisor • Medical supervisor
• Catering manager • Military leadership
• Civic, municipal, and federal officials • Parking supervisor
• Communications manager (public address, • Police
radios, scoreboard, internal-wireless, • Protocol expert
and external-public telephones) • Public relations director
• Convention and Visitors Bureau director • Public safety (signage,
• Delegation leaders nonmarketing) supervisor
• Emergency services supervisor • Sanitation supervisor
• Entertainment coordinator • Security supervisor
• Fire marshal • Television producer
• Grounds supervisor • Transportation supervisor
• Housing coordinator • Utilities supervisors (electric,
• HVAC (heating, ventilation, water, gas)
air-conditioning) supervisor • Volunteer coordinator

towing, landscape, badges/credentials, tickets/parking passes,


table/chairs, parking attendants, car wash attendants, communica-
tion radios, fencing, fuel, and shuttle buses.
After identifying each of the required vendor categories, a request
for proposal (RFP) must be developed for each service area and dis-
tributed to appropriate vendors, who, if interested, will respond with
a bid proposal. Most importantly, RFPs should include an overview
of the event, with specifics about the scope of responsibilities of both
the vendor and host organization.
The list of responsibilities for a caterer may include providing all
food and beverage service personnel, as well as equipment for corpo-
rate tents and kitchen commissary areas; contracting with the select-
ed tent, trailer, electrical, and waste management vendors to provide
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46 THE ULTIMATE GUIDE TO SPORTS MARKETING

the necessary facilities and services required to perform operations;


arranging for a florist and a decorating company to furnish all the flo-
ral and interior decorating or theme displays; securing all the neces-
sary permits and licenses required for the food service operations;
procuring certificates of insurance; and serving meals to the volun-
teers and players for free. An RFP for a caterer may also ask for a
general description and layout of the main catering compound, oper-
ational plans, sample menus with pricing, and any minimum guar-
antees that a corporate client would need to fulfill for various meals.
The host organization’s responsibilities for catering would typi-
cally include providing the corporate tents with adjoining service
areas; the space necessary for the catering compound and access to
service roads; admission and parking credentials for all employees; at
least 2 two-way radios on the host organization’s operational fre-
quency; fencing and security for the kitchen compound, corporate
village, and all other facilities; public and employee restroom facili-
ties; and in-kind food and beverage provided by sponsors for use in
preparing volunteer and player meals.
Frequently, a number of different vendor categories are included
under one RFP. This typically occurs in RFPs for tent companies,
where they will be asked to not only provide tentage but flooring, car-
peting, a hospitality village boardwalk (a deck connecting all tents),
electrical/air conditioning (or heating), lighting/ceiling fans, light-
ning rod/fire protection, television stands, furniture, cleaning ser-
vice, and decor packages.
To fulfill such a request, the tent company usually must hire sub-
contractors. The primary benefit of a comprehensive RFP is that one
general contractor, the tent company, and not the event manager, han-
dle the coordination of all these details. And, according to Tom Cipu,
sales executive of Classic Tents in Silver Spring, Maryland, the tent
company can usually deliver a better price since the subcontractors
already know the tent company and can trust that tasks will be done
in an efficient manner.
In addition to vendor and host responsibilities, RFPs should list
specific requirements regarding the type of product to be used
and/or the way in which services are to be delivered. For example, in
an RFP for a tent vendor, the following statement may be included:
“AstroTurf carpeting to be of upgraded quality that has not been used
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CHAPTER 3 DESIGNING, PLANNING, AND CONTROLLING EVENT LOGISTICS 47

prior to the event, and the carpet shall be tacked down and not
taped.”
Additional information requests about the vending company,
including years in business, experience, size, current and previous
clients, as well as the price for each of the items listed in the scope of
responsibilities and the time required to perform the service, should
also be specified in the RFP. Often, the minimization of setup and
teardown time is extremely important to a host organization.
The number of on-site staff that the vendor plans to scheduled for
your event is another important question to address. This is especial-
ly true for categories such as tenting and lighting. Dave Pavelko,
operations manager for the Correl Champions, quickly learned the
importance of hiring a local lighting company with on-site staffing
when high winds tipped over most of the event’s stadium lights.
Because of liability issues, it was extremely difficult to then find a
local company who would touch the problem. Unfortunately, the
number of on-site staff often increases the cost of service, so be care-
ful of what you request.
Evaluation criteria is yet another area to include in an RFP. The cri-
teria for graphic design service may include proposed method of
approach, experience in comprehensive project design and production,
expertise and experience of personnel, and competitiveness of overall
pricing. Whenever possible, Jeanne Taylor prefers to visit different
events and witness the work of potential vendors firsthand before
making a vendor selection. When selecting a communication vendor, it
is important to check how many frequency channels are available on
the radios; if the equipment works between hotel floors, in the arena,
and at the airport; and that the channels do not bleed over.
As expected, experience and price tend to be the most important
criteria across all vendor categories.
Although most RFPs are specific to one event, the duration of the
contract should always be stated in the RFP. Some organizations that
produce multiple events of similar type (e.g., PGA, NFL) sign 3- to 4-
year national vendor agreements. Overall, long-term agreements are
typically more efficient for both the host and vendor. One, the time
and energy involved in the vendor selection process is eliminated, and
two, the vendors have time to develop a close working relationship,
which allows them the opportunity to assist one another wherever
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48 THE ULTIMATE GUIDE TO SPORTS MARKETING

needed. Certain vendor categories such as landscape and printing will


almost always remain local for obvious reasons.
Finally, vendors should be offered the opportunity to visit the
event site prior to submitting their proposals and asked to add any
features that they feel may be missing from the RFP. This helps avoid
any hidden costs entering into the project.
As you can see, before an event manager can write an RFP, he or
she must be extremely familiar with the event. In the words of Tom
Cipu, “The more detailed the RFP, the more accurate and helpful a
bid proposal will be. Without knowing the exact number, type, or
style of tents, as well as the physical layout of the grounds, it is diffi-
cult for any tent company to appropriately respond to an RFP.”
Another frustrating point for many vendors, as expressed by
Susan Lacz, principal of Ridgewell’s Caterers in Bethesda, Maryland,
is an RFP that asks for the world without offering much in exchange.
If a host organization demands a large catering commission as well as
high-quality, reasonably priced food, they should consider ways in
which to work with the caterer versus nickel and diming them to
death. For example, if a caterer is charged for everything they need to
work, including the space required to set up their operation, that fee
will simply be reflected in the menu pricing. And in the end, the
higher the price of the catered food, the less satisfied the corporate
owner might feel about the event.
To avoid this problem, some vendors suggest that event man-
agers with minimal experience in writing RFPs include more “what
if” or “how” questions. For example, a RFP for a caterer would ask
“What commission would you offer if trash, space, and access were
provided?” and “What commission would you offer if you were
charged for trash, space, and access?” Or, “How would you set up
your kitchen and service area given the specific space dimensions?”
Some event managers, such as Jennifer Jordan-Lock, actually prefer
this approach to selecting vendors. According to Jordan-Lock, “By
asking open-ended questions, it allows you to better judge how ven-
dors think on their feet—a critical characteristic of anyone involved
in events industry.”
Irrespective of how the information is collected, the final step in
the vendor selection process is to actually review and compare all the
bid proposals received based on the stated criteria. Ultimately, the
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CHAPTER 3 DESIGNING, PLANNING, AND CONTROLLING EVENT LOGISTICS 49

highest ranked organization is selected and a contract is signed.


Although Chapter 5 covers contracts more thoroughly, for now, just
remember to read carefully and make sure all possible event scenar-
ios are covered through various clauses such as force majeure.
In conclusion, a sport event vendor RFP should include as many
details about the event as possible, as well as the specific roles and
responsibilities of both the vendor and host organization. The most
important consideration to remember is to feel comfortable and con-
fident with your vendors, as they are your true partners in an event.

SELECTING A WEB PARTNER


In today’s high-tech world, an additional event vendor may be a Web
developer or Internet company. If electing to outsource Internet devel-
opment or to work with an existing Web company to help market and
administer your event, be sure to follow these recommendations:
1. Make sure that the Internet company actually has the technical
capacity to do what they are claiming they can do and that they
can provide all the functions you want them to do (e.g., online
registrations, database management, page skimming, e-com-
merce, chat rooms, tournament draws, security, outbound e-
mail, easy use and maintenance of schedules, news, statistics).
Many dot coms will come with a fancy laptop presentation
demonstrating their capabilities, but they may not be able to
actually implement them. Ask to see a site that has been devel-
oped by this company and that is up and running on a server. If
one is not available, ask how long they expect before they will
have the service ready to demonstrate. Find out what version of
software is being used—is the company in beta testing or are
they on the third version? Obviously, you may not want to be
the guinea pig. Also, inquire about the load capacity, how much
information can be put on the site (e.g., digital photos), and how
much business they can handle.
2. Gather information on the people running the company, along
with their past experiences. It is often helpful to work with peo-
ple who not only have the technical expertise but who also have
some experience working in the sports industry so that they
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50 THE ULTIMATE GUIDE TO SPORTS MARKETING

understand the needs of all constituents, as well as the politics of


amateur and professional sports. Find out how many staff mem-
bers the company has and how many are working in the field
helping local sport coaches and teams utilize the Internet. What
type of service or training does the company provide? Is there a
service desk open 24/7? Also, how many people do they have
selling advertisements and sponsorships? Be leery of those sites
quoting large amounts of money that your organization will
receive from ad revenue if they do not have an advertising sales
force. Also, how many other sports organizations, teams, ath-
letes, or events are working with the Internet company? Ask for
references.
3. Request to see records of the company’s funding or financial sta-
tus. Many dot coms may be running on a shoestring hoping that
by signing your organization or event, they will be able to secure
angels and venture capital financing. Once they sign your organi-
zation, they may also be too busy signing other organizations or
looking for money to actually develop and grow your Internet
site. Unless this company has something very unique to offer,
you may be better off going with a group that has venture capital
money already in place. Another factor to consider, however, is
how close a company is to going public. Often, once a company
issues an IPO, the founders and people that have developed the
company will depart soon after their golden handcuffs have
expired, leaving you with a new and often skeletal staff.
4. Find out what type of revenue opportunities the company is
offering. Some companies offer a flat fee and/or stock options in
exchange for total control and exclusivity over your site. This
includes all revenue potential. Such fees are negotiated based on
the leverage of the party (e.g., the number and demographics of
members and/or fans, the prestige of the sport, the amount of
content). Aside from losing some identity, a concern with this
model is that the Internet company may sign an advertiser or
sponsor that conflicts with one of your organization’s existing
sponsors.
Other Internet companies work on a revenue split model
where your organization keeps a larger percent of any advertise-
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CHAPTER 3 DESIGNING, PLANNING, AND CONTROLLING EVENT LOGISTICS 51

ment or sponsorship revenue that it brings in, and vice versa,


the Internet company keeps a larger percent of those advertisers
or sponsors that they sign. For merchandise sold on the Web
site, if the merchandise is specific to your organization (e.g., it
bears your name or logo), you should receive a greater percent
of the profit. Percentages range from 5 to 30 percent depending
on the type of product.
Still other Internet companies designate areas on the Web
site in which your organization can sell local advertisements and
keep 100 percent of the revenue, along with other areas for
national advertisements that the Internet company sells and
keeps the revenue. In addition to these revenue models, you
may also want to negotiate bonus clauses for reaching a certain
number of visitors, for an increased percent of page views, or if
the company is purchased or goes public.
5. As far as identity, ask how the site will be structured. Will your
organization be able to keep its own brand identity and its own
URL, or will visitors need to type in the URL of the Internet com-
pany? Will your Web site keep the look and feel of your organi-
zation and/or your current Web site, or will your Web site be
similar to other organizations that have signed up with the
Internet company—in a cookie-cutter format. Will the Internet
company be able to put advertisements wherever they like, or are
there specific locations on the site designated for advertisements?
6. Considering that the Internet is still a new phenomenon, your
organization may prefer to hedge its bet and work with a few
companies. You could hire a Web developer to simply design
your site, find another company to host (i.e., provide the server)
for the site, and then maintain it internally by hiring a Web mas-
ter. Or, you could have one company design, host, and maintain
your main site and have other companies develop and host sub-
sites, such as a kids’ club site, alumni site, community site, or e-
commerce site, that are all linked to the main site.
7. When negotiating a contract, it is advised to ask for a nonexclu-
sive short-term agreement or designate exclusive rights for only
specific services. Do not offer blanket rights, as you do not know
what technology may be coming in the near future or what the
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52 THE ULTIMATE GUIDE TO SPORTS MARKETING

value of your rights may be in the future. For example, if you


offer full Internet rights and broadband width grows dramatical-
ly, the Internet company could possibly start video streaming
your events online, limiting your ability to maximize television
rights fees. Other contract terms should include (a) prior
approval of all design work to make sure the image of your
organization is portrayed appropriately; (b) a list of product cat-
egories that the Internet company is prohibited from associating
with your Internet site; (c) the minimum amount of revenue the
organization will receive per year, with specific percentages out-
lined for all revenue streams such as sponsorships, advertise-
ments, and merchandise; (d) milestone dates that the company
must meet if new technologies were promised; (e) the right to
review and approve any mergers and acquisitions that involve
the transfer of your rights from one Internet company to another
with an out-clause if the terms of the contract change (this is
very important in case the new Internet company is applying a
different business model than the one you originally agreed to);
(f) bonus clause that offers your organization a financial incen-
tive if the company you are currently associated with gets pur-
chased or goes public; and (g) approval of any links that will be
placed on your site with a reciprocal link required (typically you
only want to link with sites that draw an equal number or more
visitors to their site).

VOLUNTEERS
Sport events typically require intensive volunteer participation.
According to Jeff Ruday, chief operating officer and director of
Finance for the Hoop Dreams Scholarship Fund:
A three-on-three basketball tournament with 800 to 1,000 par-
ticipants will require approximately 500 volunteers to serve as
court monitors per court per day, plus others to handle
refreshments, registration, score table, and so forth, not to
mention setup and breakdown of equipment.
Recruitment and training of volunteers is important in all sports
events. A charity or sponsor associated with an event is a good source
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CHAPTER 3 DESIGNING, PLANNING, AND CONTROLLING EVENT LOGISTICS 53

for volunteers. Another successful way to recruit volunteers is to men-


tion the need for volunteers in your promotional materials. Popular
event such as the Cherry Blossom Run in Washington, D.C., which
requires a lottery drawing to enter, offers volunteers an automatic reg-
istration for the following year. Megaevents such as World Cup Soccer
require a very structured volunteer recruitment and training program.
The number of volunteers required to host the Summer Olympic
Games is approximately 75,000, while 1,000 to 1,200 are required for
professional All-Star events and golf tournaments. A volunteer coordi-
nator is typically hired to develop and oversee such programs. When
possible, identify volunteer leaders for specific tasks and ask that each
of these people recruit the number of additional volunteers that they
will need to complete their assignment. Volunteers are more likely to
show up if they are reporting to a friend or family member. This is often
referred to as “herding volunteers” versus a “cattle call for volunteers.”
Budget considerations should also come into play when dis-
cussing volunteers. Although the term volunteer is used, the cost of
recruiting, outfitting, feeding, and transporting volunteers range
from $10 to $250.
Training programs typically include a basic educational component
followed by specific department training. Simulation exercises should
be included in these sessions where potential scenarios are played out
as close to reality as possible. Volunteers with radios in hand should sit
around a table while the problem is posed. They should then simulate
what they would say and do to rectify the problem.
Once the day of the event arrives, let the volunteers take charge.
Tell them to do what they have to do (get more ice, water, call emer-
gency services, and so on) to make the event enjoyable and safe for
participants. Make sure your volunteers understand that the cus-
tomer is always right and to show respect.
Whether volunteers or paid employees, you should appoint trou-
bleshooters to supervise the setup of the event, the flow of people,
and the breakdown of the event.

UNIFORM DESIGN AND DISTRIBUTION


Have you ever wondered why certain sport event volunteers
and staff members are dressed the way they are? Have you ever
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54 THE ULTIMATE GUIDE TO SPORTS MARKETING

considered the planning it takes to design, manufacture, and ulti-


mately distribute all those outfits? According to Andrew Marsh, a
veteran sport event manager and a uniform distribution coordinator
for World Cup USA 1994, this is one of the most challenging yet
important pre-event logistics. The uniforms of the staff and volun-
teers and perhaps even the contractors and vendors should reflect the
“look” of the event. Not only will uniforms provide a means of iden-
tification and authority for the staff, but they bring class to the event.
Well before the event begins, the style, color, and fabric of the uni-
forms are selected for specific reasons. For example, the executive
staff, interpreters, administrators, and hosts and hostesses may be
outfitted in a blazer and slacks or skirts and blouses, since it is likely
that they will interact with the media, sponsor representatives, or
public officials. To avoid confusion among the patrons and to build
team spirit, each division within the management team should have
a unique uniform color and style. The admissions or public informa-
tion staff may wear a blue polo shirt and matching shorts or pants,
while the ushers wear a red T-shirt or windbreaker. The operations
and support staff members are outfitted in more casual attire, such as
shorts and a T-shirt, that does not affect their work—namely, setting
up equipment. The uniforms for security and medical staff must be
readily identifiable yet not threatening to the spectator. The security
guards for the World Cup wore a khaki uniform complete with pur-
ple berets reflecting the international and peaceful flavor of the
games. The medical personnel wore white jackets with an interna-
tionally recognized green cross on front and back. The uniform fabric
must be selected with consideration for the weather and temperature.
Obviously, you do not want wool uniforms for a summertime event
or shorts in the winter.
Depending on the number of staff involved, the style (e.g., elas-
tic waist or button) and number of pieces in the uniform, sizing and
distribution could be problematic. It is very important that the staff,
particularly the volunteers, get the correct uniform and that it fits
well. An ill-fitting uniform reflects poorly on the event and for a vol-
unteer with shorts three times too big, make it doubtful that he or she
will enjoy helping you out. It is important to consider these points
when selecting uniforms:
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CHAPTER 3 DESIGNING, PLANNING, AND CONTROLLING EVENT LOGISTICS 55

• Sizing
• Ordering in time for manufacture
• In-kind sponsorship of uniform parts
• Simple distribution
• Exchanges/return policy
• Alteration of executive uniforms
When Lisa Delpy Neirotti volunteered for the 1988 Seoul Olympic
Games, she first reported to a warehouse where she was measured for
her uniform and provided a shoe coupon. This coupon was
redeemable at certain stores throughout the city that carried the offi-
cial uniform shoe. Lisa later returned to retrieve her uniform, at
which time her credential was scanned and she was checked off as
receiving all pieces of the uniform.

FACILITIES
Venue selection is extremely important but may be limited by the type
of sport event availability within your region. Each sport governing
body provides guidelines on required venue dimensions and ameni-
ties in order for an event to be officially sanctioned. The number and
type of permits and restrictions demanded by a venue, such as unions
or signage restrictions, may also influence your decision. In addition,
you must consider the expected size of the crowd. You do not want to
hold your event in a 15,000-seat arena if only 2,000 people will attend.
Access to public transportation is another critical factor. Again,
one of the most efficient ways of handling these challenges is to find
out what others have done in similar situations. If at all possible,
select a venue with a suitable area for hospitality. The Reston Town
Center in Virginia, where the Muscular Dystrophy Association
(MDA) Tour de Bud bicycle event took place, has a public pavilion
equipped for food service. Such amenities reduce the overhead of
tents and trailers.
A sport event that requires a great deal of equipment (e.g., skiing,
cycling) will need a storage facility. Each cross-country team at the
1998 Winter Olympic Games brought approximately 30 pairs of skis.
That meant that between 40 to 70 tons of sport equipment needed to
be secured and stored during the games.
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56 THE ULTIMATE GUIDE TO SPORTS MARKETING

Ask athletes for course ideas in sports such as cycling and run-
ning. Try to keep participants off the main roads and avoid traffic
lights and turns; if the course is straight, you need fewer directional
signs and police officers. Although volunteers should be posted at
major intersections for safety and directional purposes, most cities
also require and charge for police officers to work the event.

WEATHER
Scheduling of the actual event as well as timing of rehearsals is just
one consideration under weather conditions. The number of staff and
volunteers required for an event also depends on the weather. More
people will be needed to shovel snow and prepare grounds in bad
weather. Inclement weather, or merely the threat of it, can clog high-
ways or reduce audience size. Have standby crews in place in the
event of inclement weather.
The Farmer’s Almanac is a useful tool in predicting likely weather
conditions; however, as the date of the event approaches, the National
Weather Service is a better gauge of rapidly changing meteorological
activity. Still another source of weather information is the Federal
Aviation Agency located at your local airport. Ask the agency for rec-
ommendations on weather conditions and your future activities.
Whether you hire a personal meteorologist or merely raise your
index finger to check the wind direction, paying attention to the
weather is a major logistical consideration before, during, and imme-
diately after your event.

TRAFFIC FLOW: KEEP THINGS MOVING


According to a survey conducted by the George Washington
University, the most common logistical problem at events is traffic
control. Effectively moving large number of cars and people in and
out of events requires a solid transportation plan and cooperation
from local law enforcement and transportation departments, as well
as event organizers and volunteers. Police should be located at strate-
gic positions (traffic lights, stop signs) on all routes leading to and
from the venue in order to keep traffic moving in a continuous flow.
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CHAPTER 3 DESIGNING, PLANNING, AND CONTROLLING EVENT LOGISTICS 57

Directional signage should be located on highways as well as on all


tributary roads, alerting travelers to event traffic and suggesting
appropriate exits and parking options. Likewise, if a shuttle system is
used, satellite parking lots need to be conveniently accessed with an
adequate number of parking spaces and appropriate signage to
inform people where to park and pick up the shuttle. A parking lot at
a large shopping mall is often selected, as there tends to be plenty of
parking. In addition, stores often welcome this idea because it may
drive visitors to shop before or after the event.
Another strategy to keep traffic flowing is to prohibit or restrict
pedestrian crossing by setting up blockades or positioning pedestrian
police. In Atlanta, pedestrians increased traffic congestion by freely
crossing busy lanes of traffic. If necessary, temporary pedestrian over-
crossings should be built.
At venues where public transportation is available, be sure to
implement a crowd control plan. During the 1998 World Cup in Paris,
France, police set up a blockage outside the metro/train station limit-
ing the number of people entering the station to avoid overcrowding
on the platforms, which could lead to injuries.
Furthermore, bus drivers need to be trained and provided spe-
cific directions with contingency routes in the case of traffic or acci-
dents. Grave lessons were learned from the 1996 Olympic Games in
Atlanta when bus drivers were recruited from outside Atlanta and
the budget did not provide enough funds to bring the drivers to
Atlanta before the event for training. The result was drivers who con-
tinually got lost and one who actually stopped her bus and left it
when she realized that she was heading down a ramp for a highway
claiming that she has never driven on a highway and could not do it.
In New York for the 1998 Goodwill Games, a bus taking media to a
figure skating competition on Long Island drove in circles for 30 min-
utes in New York City rush-hour traffic before Lisa Delpy Neirotti
finally approached the driver and asked him to radio in for directions.
To simplify training, a schedule should be created so that bus drivers
are assigned to a limited number of venues reducing the need to learn
directions to all venues. In Nagano, Japan, bus drivers for the 1998
Winter Olympic Games actually had onboard navigational systems in
the vehicles providing specific directions.
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58 THE ULTIMATE GUIDE TO SPORTS MARKETING

TRANSPORTATION
Spectator Arrivals and Departures
Professional parking lot supervisors use the terms trickle and dump to
describe the rate at which spectators will attend your event.
Trickle means exactly what its image conveys. Your guests will
come and go from the sport event throughout a given period of time
rather than all arrive and depart at the same time. Dump means the
opposite of trickle and describes all the guests arriving and leaving
within a narrow window of time, such as 30 minutes prior to the
event and within one hour following it.
These arrival and departure activities not only involve public
safety but also interact with the entire hospitality experience. A spec-
tator’s first impression of your event may be through the automobile
windshield upon arrival in your parking lot. The last impression most
certainly will be of your parking facility and traffic control.
Determine early on the means by which guests, athletes, specta-
tors, and media will arrive. Then design and control transportation
and parking logistics to meet their needs (see Figure 3-4). Do you
have a jumper cable service in your lot to assist stranded drivers? Do
you have adequate lighting, signage, and parking hosts that make the
guest feel secure and at the same time help reduce the likelihood of
crime? Should you provide a parking shuttle from the satellite park-
ing lot to the front gate to assist your guests and reduce parking con-
gestion? Should you work closely with a municipal transportation
agency to encourage spectators to use mass transit by offering an
incentive such as a discount admission or a sponsored ad gift spe-
cialty? To avoid a large rush of traffic to the opening ceremonies of the

Figure 3-4

Traffic Patterns to Consider in Planning


1. Athlete housing – practice field – competition area – media center –
cultural/social activities
2. Media housing – media center – practice field – competition area –
cultural/social activities
3. VIP housing – competition areas – special requests
4. Spectator pickup points – competition areas
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CHAPTER 3 DESIGNING, PLANNING, AND CONTROLLING EVENT LOGISTICS 59

1988 Calgary Olympic Games, Maxwell House hosted a community


breakfast that attracted many people to the stadium early. Likewise,
many events plan fireworks or concerts after an event to avoid a mass
exodus. The goal of any successful arrival and departure is to ensure
a safe, easy, and fun experience for the spectator.

Athletes, Media, and VIP Guests


Transportation of athletes, VIP guests, media, and other officials needs
to be considered for larger events. Depending on the demand, trans-
portation, in some cases, can be contracted out in whole or in part.
Transportation of VIP guests can be as simple as hiring a limou-
sine or as complex as hiring a bus company with hosts and hostesses
on each vehicle. When transporting athletes to and from the airport
or to competition and practice venues, remember to request the
appropriate type of vehicle (e.g., trucks for bicycles or pole vault
equipment) or at least provide specialized equipment, such as a bicy-
cle rack for a car.
For media, make sure the transportation system is efficient. At the
1996 Atlanta Summer Olympics, the media were outraged by the
“hub” system in which media buses from all venues took passengers to
a hub area where they had to transfer buses to go to the media center,
to the media village, or to another venue. Lisa Delpy Neirotti remem-
bers the outbreak on the bus returning from the Opening Ceremonies
at 11:30 p.m. as the media bus passed the media center heading to the
hub 2 miles away. Reporters were trying to jump out the windows so
they could get to the center in time to meet their press deadline.
Transportation logistics such as the overlap of beginning and end-
ing times in multisport and venue events are very important.
Miscalculation and coordination of buses could cause major traffic
congestion. For megaevents such as the Olympic Games, normal traf-
fic patterns are studied and events scheduled accordingly. Local com-
panies are also asked to make arrangements for employees to work
from home or take vacations during the period of the Games.
Continual monitoring is necessary to either increase or decrease
the number of buses in circulation on each traffic pattern. At the 1998
Winter Games in Nagano, it took a few days before the organizers
realized that they should put more than one bus on the route from the
media village to the press center between 8 to 9 a.m., as this was peak
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60 THE ULTIMATE GUIDE TO SPORTS MARKETING

travel time to make the daily 9 a.m. IOC (International Olympic


Committee) press conference.
Large parking areas with clearly marked signage must also be
planned close to public transportation and/or for shuttle pickups. In
addition, make sure your limousines and buses have a predetermined
area to stage.
Organizing the transportation of event entertainment may also
become an issue. When Frank Supovitz had to transport over 1,000
halftime show participants to San Diego’s Qualcomm Stadium for the
Super Bowl, he knew he had to have plan A, B, and possibly C:
When you are moving large groups into a crowded areas, you
must not only work with local police to establish a traffic pat-
tern but also plan for emergencies such as the bus breaking
down and other emergencies which require an immediate
remedy to keep the schedule on time.
Transportation for high school, collegiate, and professional sport
events must also be coordinated and monitored. Schedule your trans-
portation as far out as possible, but the day before each sport event,
double-check the exact departure time and the bus driver’s name and
home number in case of emergency. Professional teams hire travel
managers to handle all ticketing, equipment cargo, and local trans-
portation needs. SportsTravel magazine is an excellent resource for
those involved with event-related travel and logistics.
The checklist in Figure 3-5 will help you keep your schedule run-
ning smoothly as you plan and execute your transportation manifest.
When providing transportation, make sure to inform guests of the
length of the journey, especially if there are no bathroom facilities on
board the vehicle. Also, take advantage of this opportunity to make a
first impression by introducing your guests to the area. Ask the trans-
portation host to provide information and interesting details along
the journey. Your guests will also appreciate refreshments if the trip is
particularly long. Guests arriving from great distances can be irrita-
ble, so you can use this initial greeting to promote a happier attitude.
A good first impression is particularly important for the media
because you always want positive press coverage. Make arrange-
ments beforehand for special media parking, and have a media area
or building designated specifically for their use.
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CHAPTER 3 DESIGNING, PLANNING, AND CONTROLLING EVENT LOGISTICS 61

Figure 3-5

Transporting Athletes and Participants Smoothly


1. Identify all transportation and parking needs (athletes, VIPs, media,
spectators, entertainment).
2. Make certain all riders have proper credentials.
3. Confirm that the bus company has appropriate parking passes, an accurate
and current manifest listing all riders, a schedule of pickup and delivery,
and routes.
4. Verify that all bus drivers are connected through communications to a
central dispatcher who reports to you.
5. Work with local, traffic, and parking officials to produce an accurate map
showing the confirmed transportation route, including specific drop-off
points, pickup points, and parking designation. Be sure to note if there are
any restrictions on the size of vehicle that can access these points. If large
buses cannot be accommodated, smaller vans will need to be secured.
6. Prepare with authorities a separate alternate route to be used in case of
emergencies (threats, traffic jams).
7. Assign one person to confirm and verify that the entrance gate is accessible
to all transportation and that the guard has been briefed.
8. Position one staff person at the transportation arrival area to keep the area
clear and to greet riders and direct them to their appropriate entrance.
9. Confirm that the bus company has insurance and has named your
organization as an additional insured party.
10. Do not identify buses with specific names. This attracts attention. Instead,
use a simple numbering system and give each rider a pass with the same
number.
11. Know the phone number for a 24-hour towing service in case any bus
requires assistance. Arrange with the operator of the tow truck to be on
standby during the transportation period. Always have a spare bus ready
to go in case stranded riders must be transferred.
12. Arrange for a security escort if protocol requires it.
13. Provide a rest area with refreshments for the bus and limousine drivers
during the event.

SPECIAL ACCOMMODATIONS
With the passing of the American’s with Disabilities Act (ADA)—
which mandates that reasonable accommodations be made to pro-
vide equal access for persons with disabilities—ramps have been
built, handrails have been hung, and infrared listening systems have
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62 THE ULTIMATE GUIDE TO SPORTS MARKETING

been installed to allow spectators and athletes with disabilities the


opportunity to enjoy and participate in sport events without undue
restrictions. As you plan your sport event, be sure to survey the needs
of your various constituency groups. Perhaps your groups sales
department has sold a block of tickets to a group with disabilities and
you may need to make special arrangements. Most sport events today
often schedule a sign language interpreter to assist hearing-impaired
guests. Sports events such as the Paralympic Games obviously will
have a much higher number of individuals with disabilities in atten-
dance than other events.
As a producer of a sport event for athletes with disabilities, you
need to identify all venue limitations and remove barriers for people
who are visually, auditorially, and physically impaired. Since the
ADA applies strictly to public facilities, you may need to build tem-
porary ramps with plywood or remove stall doors in private venues.
Changing rooms with seats should also be available for athletes who
need to remove artificial limbs prior to competition. The disabled
parking plan is also critical for temporary venues. Make certain you
determine how many spaces are required by local ordinance and that
you assign them in the correct location with appropriate signage.
Kirk Bauer, executive director of Disabled Sports USA, also sug-
gests assigning volunteers as facilitators to help people who are
blind adjust to unfamiliar territory, aid wheelchair athletes up steep
grades not built to code, or help in the transfer from the wheelchair
into sport equipment or into the pool. This last responsibility
requires the volunteer to have some knowledge of appropriate and
safe transfer procedures.
Another unique logistical consideration when producing sports
events for athletes with disabilities is the various categories that must
be included. The National Amputee Summer Games have classifica-
tions such as wheelchair, stand up, and blind so that athletes compete
on an equal playing field. In addition, there are three levels of visual
impairment. In disabled ski competitions, there are 15 different phys-
ically and visually impaired classifications. If a wheelchair category is
included in a regular run, special consideration of the terrain should
be made. Avoid steep and windy hills, and try to select hard concrete
surfaces over gravel surfaces.
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CHAPTER 3 DESIGNING, PLANNING, AND CONTROLLING EVENT LOGISTICS 63

FOOD AND BEVERAGE


Susan Lacz of Ridgewell’s, a catering firm in Bethesda, Maryland, first
became involved with sport event hospitality in 1988 and has since
developed a profitable niche for the 72-year-old catering company. She
has truly witnessed sport hospitality escalate and transform into big
business. To illustrate the rapid growth, Susan mentioned that “16
years ago there were 6 tents at the U.S. Open and in 2000 there were
over 50. A tent that cost $12,500 at the Preakness in 1988 would today
cost approximately $80,000 plus.” Of course, the demand and cost for
hospitality varies in different demographic regions.
The tradition of food at sport events started during the era of folk
games and continues as a strong influence today. At games like the
NFL Super Bowl, the per capita expenditure on food and beverage
may climb to $50 or more per person. Food and beverage is not only
big business in sport events, it is also a serious logistical concern for
a variety of interrelated reasons. Although Chapter 4 covers hospital-
ity in detail, a few of the logistical considerations are described in the
following sections.

Licenses and Permits


Not the least of these concerns is liquor liability. In this era of mass lit-
igation, concessionaires are rightly concerned about the pouring laws
in their jurisdiction and are investing heavily in training programs for
their staffs to make certain that the dispensing of alcoholic beverages
is in accordance with the law. One major logistical consideration is
who will hold the liquor license for the event. Determine whether beer,
wine, or liquor will be dispensed free or sold. If the venue “clubhouse”
has a liquor license, you may not need to apply for a separate license.
The health department will also require your sport event to obtain
a license or permit to dispense food that needs to be heated or cooked.
Nonalcoholic beverages, fruit, prepackaged, or prebaked food such as
muffins and bagels do not require a permit.
A host of regulations will be required to obtain this license,
including in some jurisdictions running water for each food stand
and netting to protect food from foreign substances. Some jurisdic-
tions may require food handlers to have individual licenses and to
wear specific clothing such as protective headgear. The sponsor,
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64 THE ULTIMATE GUIDE TO SPORTS MARKETING

manager, host, or concessionaire dispensing the food or beverage has


a responsibility to know the law and comply accordingly. Therefore,
before you handle any food or beverage, make sure you learn what is
required in order to feed the multitudes that come to your event. This
information can be obtained directly through the health department
in the appropriate geographical jurisdiction.

Purchasing, Inventory, and Distribution of Goods


Purchasing, inventory, and distribution of goods, as well as the
design of the service counter are other logistical concerns regarding
food and beverage. You must consider the type of event (number of
stops in play), the time of the event (meal time or snack time), the
capacity of the venue, the amount of tickets sold, and the weather,
particularly if food or beverage is sold outdoors. Historical records
are also helpful in determining the appropriate quantity of food to
purchase. And you must know where the food and beverage will be
warehoused, how it will be transferred, and who is accountable.
Placement and design of service stands should also be considered in
terms of space allocation for maximum efficiency and spectator
access. Quality can only be maintained through continual evaluation
of needs and the distribution service.

Determining Final Guarantees


A final guarantee on the number of guests or amount of food is usu-
ally required 36 to 72 hours in advance of the event. This guaranteed
date and time is critical. If you miss it, you may be obliged to pay for
the number of guests you estimated in the original contract. When
determining the final guarantee, consider that if the event is free, it is
typically safe to guarantee for 15 percent under the actual number of
confirmed reservations. (See Chapter 4 for more information.)

Food Concessions
For the general public, be sure to have ample supply of food and bev-
erage and staff to keep the concession lines to a minimum. Train
employees to prepare for busy times (e.g., halftime, breaks) and to
know what food sells the best. At the MCI Center in Washington,
D.C., the “chicken in the basket” is the most popular food item and
lines back up while people wait for their order to be filled. New tech-
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CHAPTER 3 DESIGNING, PLANNING, AND CONTROLLING EVENT LOGISTICS 65

nology may relieve some concession congestion by allowing atten-


dees to pre-order, prepurchase food orders via the Internet, and even
specify the time that they would like to pick up their food or have
their food delivered to their seat! At the venue, attendees go to an
express line and present a team debit card or coupons that shows
their pre-order.

TICKETING AND ADMISSIONS


The sale of tickets is a logistical challenge that can determine the
financial success or the doom of your sport event. Your first major
decision should concern the distribution network. Will you print and
distribute your own tickets? Options include selecting a company
such as Ticketmaster or Tickets.com that prints, sells, and accounts for
all tickets for an added premium, doing it in-house, or choosing some
combination of the two. In selecting an outside ticketing agency to
distribute your tickets, find out how extensive the distribution chan-
nels are in your area, whether they offer online ticketing, and if they
require exclusive rights. Once you have identified the company, nego-
tiate royalties and service charges. Ticket service charges can vary
depending on the price of the ticket and the event itself. High-end
boxing tickets of $400 or more increase the distributor’s risk; thus, a
service charge of $10 may be added. As the host organizer, you
should remain in control of the computer setup and reserve certain
sections of seats or earmark seats with obstructed views. For online
ticketing, check to see if names and contact information can be col-
lected on visitors to the site and if customers are able to select a spe-
cific seat or simply assigned a seat.
Mark McCullers, general manager of Columbus Crew stadium,
states:
Communication is the key to success in sport events. If all
advanced specifications are not accurate, ticketing becomes a
problem. An example is a pole that was said to be 20-feet tall
and turns out to be 40 feet and blocks the view of 15 seats.
Or the top lighting shelf of a boxing ring is wider than com-
municated and blocks the view of spectators in the upper
seats. Or … on the regulation-size field for World Cup Soccer,
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66 THE ULTIMATE GUIDE TO SPORTS MARKETING

the corner of the field is obstructed in the upper-level seats.


Since this does not allow spectators to see the corner kick,
such seats must be identified as obstructed seats.
Forgery of tickets and scalping are major concerns for sport event
management officials. Holograms have been effectively used to iden-
tify fake tickets. It is important to know the local law as it relates to
scalping and to inform ticket purchasers. The Baltimore Orioles set up
a “scalp-free zone” in which ticket holders can sell their tickets at face
value.
Security for ticketing and admissions is essential to ensure the
safe collection, accounting, and deposit of funds. An experienced
accounting firm can assist you with developing certain protocols to
reduce the risk of your cash management. Make certain that each tick-
et booth has police or armed private security supervision and that the
transfer of funds is made either by armored truck or with a police
escort. Vary the time you transfer funds and alternate your route.
All ticketing and admissions personnel or the principal contractor
for this area should be bonded to guarantee your investment. In addi-
tion, each ticketing and admissions worker should be trained, super-
vised, and checked in and out of the operation to ensure fidelity.
Barry Glassman, formerly program coordinator for the Muscular
Dystrophy Association, secures his financial intake at sport events by
keeping more than one person on each money-collecting and count-
ing position. He advises that “no one person should be in charge of
collecting, counting, and depositing money. A series of checks and
balances should be in place to protect your assets, including dual sig-
natures on checks.”
Many sport event managers have successfully used a secret spec-
tator system to catch dishonest ticketing and admissions personnel
committing a felonious act. If these persons are aware that secret
spectators are being used, they may think twice before committing a
crime. In addition, raised lettering on tickets or boldly printing the
date or game number helps to easily identify the ticket and reduces
admission losses. Other suggestions are to place plain-clothes
observers in front and behind the entrance gates and to rotate ticket
supervisors in no particular order—sometimes clockwise every gate,
at other times counterclockwise every two gates.
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CHAPTER 3 DESIGNING, PLANNING, AND CONTROLLING EVENT LOGISTICS 67

In sport events as in general entertainment, credentialing has


grown in importance with increased criminal activity. Make certain
that all admissions personnel are thoroughly familiar with the vari-
ous credentials and test them to make sure they can easily spot coun-
terfeit identification. (See Chapter 6 for specific information on
credentials.)

TICKETING AND SEATING VARIATIONS


As we know, each sport event is different. Some require tickets to be
purchased that include admission only, while other includes admis-
sion and parking. The benefit of including parking is the reduced
time it takes to move cars into the lot and the reduced number of
parking lot attendants required during the event. Other events are
free yet require some form of ticket (this increases the psychological
value of the event and assists in managing the numbers of spectators),
while others, although rare, just open the gates and let everyone
enter. For ticketed events, the selection of seats may include luxury
box or suite tickets, reserved seating, general admission, or festi-
val/open seating:
• The luxury boxes are usually leased by corporations, require a
catering service, and often have an exclusive entrance in addi-
tion to special parking arrangements.
• Reserved seats are typically located in prime locations close to
event activities. These seats are often of better physical quality
than general admission seats.
• General admission seats are a lower-priced seat usually in a larg-
er section with a more distant view of the sport event.
• Finally, festival seating or open seating allows the spectators to
choose his or her seat without prior assignment by ticket num-
ber. Venue managers do not look favorably upon this type of
seating because major riots, even deaths, have occurred as fans
have stampeded for seats. For safety and security reasons, many
venues have banned festival seating.
The type of admission and seating plan you select will ultimately
determine the level of logistical planning required for your event.
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68 THE ULTIMATE GUIDE TO SPORTS MARKETING

When free festival seating is offered, more security is required to


restrain the spectators. If you select paid reserved seating, less securi-
ty is needed because of the orderly seating system you have planned.
However, each event requires a different level of logistical prepara-
tion. You can ease your burden by making certain you match the type
of ticketing and plan of seating to the audience to assure your guests
of a smooth operation.

SEATING DESIGN AND CONTROL


Stadium-style seating is traditional for most sport events. It uses four
sides of the stadium for the spectators to view the event. However,
with the high-tech, made-for-TV spectaculars planned for the
Olympic Games and major bowl games, two other types of seating
occur in sport events. Spectators may experience a thrust style where
the action “thrusts” into the middle of the audience seated on three
sides or an auditorium style where the audience is seated out front
and the action takes place on only one side of the athletic field.
As you prepare your logistical plan for the seating configuration of
your sport event, remember that the more angles involved in produc-
tion, the higher the cost. Although the auditorium style is more cost-
effective, the stadium style allows spectators greater participation.
Consult with your television producer to ensure that your staging and
seating will allow the maximization of television viewer involvement.

SAFETY AND EMERGENCY PRECAUTIONS


Whether you are planning a 5K road race or organizing the World
Cup of Soccer, care must be taken to ensure for the safety of specta-
tors and participants. Arrangements need to be made for police, fire,
and emergency services. Refer to Figure 3-6 for procurement ideas.
When organizing international events, particularly soccer events,
ticket assignments need to be allocated based on team alliance so that
rivals are not sitting next to each other. For the 1998 World Cup in
France, venues were designed to prohibit spectators from moving
freely around the stadium (ticket holders in one section could not
enter another section), and in other soccer venues in Europe, oppos-
ing teams are seated in a fenced enclosure.
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CHAPTER 3 DESIGNING, PLANNING, AND CONTROLLING EVENT LOGISTICS 69

Figure 3-6

Emergency Care Procurement Ideas


• Local Red Cross may provide emergency care for your sport event in
exchange for a small contribution.
• City or county fire and police may be available at no charge, but they can be
called away for emergencies. If fees are charged, they may be waived
depending on the relationship the event director or organization has with
government officials and the amount of profit made.
• Private security and ambulance companies are usually paid by the hour. A
typical fee for a private ambulance company is $150 per hour. Be sure that
the ambulance service is used not only for transportation but also is capable
of emergency care.
• An organization such as the International Association of Fire Fighters or the
Radio, Emergency and Communication Team (REACT) may provide free
services as a sponsor. REACT is a nationwide disaster relief organization
whose members use events to practice their skills. The organization is
especially fitting because its members are local and know the area, have
medical and communications training, and provide their own medical and
communication equipment.

Make certain that any high-risk entertainers or performers (high-


wire acts or fireworks companies) name you, the event manager, and
your organization as an additional insured party on their insurance
policies. Check with your insurance professional to determine the
level of risk and then make sure the appropriate insurance is in place.
(See Chapter 6 for more details on insurance.)
Without alarming the spectators, post appropriate signage or
make frequent announcements alerting them to potential risks.
Document these announcements and signage with photography and
recordings. Signage such as “Halftime show activities are extremely
hazardous. Please remain seated throughout the performance as a
safety precaution” or “Pyrotechnic Staging Area, Do Not Enter” may
protect you from a future lawsuit.

HALLMARK OR RECURRING EVENTS


A hallmark event—that is, a special event that does not typically
occur regularly at the same location or time—presents a particular set
of logistical problems because of the erratic nature of the event and
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70 THE ULTIMATE GUIDE TO SPORTS MARKETING

the new environment for most of the spectators. A recurring event


presents somewhat easier logistical challenges because the audience
may be composed of a high percentage of repeat attendees who are
familiar with the venue and understand the event process and system
in advance of arrival.
When planning logistics for either a hallmark or recurring event,
make certain you understand the habits of your spectators in order to
plan accordingly. If spectators are likely to arrive early for a hallmark
event to avoid parking problems, you must plan for extra staffing at
that time. Using the same logic, spectators at a recurring activity may
arrive somewhat later and you must staff to meet their arrival patterns.
Keeping precise statistics of the arrival, flow, and departure times
of your guests is helpful for both recurring and hallmark events. You
can compare and analyze data for the production of your next event
of similar size and scope.

AWARD CEREMONIES
The presentation of awards can be as simple as mailing a certificate or
ribbon through the mail or as elaborate as an all-participant gala din-
ner and dance. For outdoor events such as road races, it is advised to
have a decorated awards stage in which participants can gather.
Entertain them with music prior to the presentation. A dynamic
emcee always adds to the overall ambiance.
Awards dinner banquets may be held in a gymnasium or restau-
rant. Food can be provided either by a caterer or by parents potluck-
style in a gym, while restaurants will typically offer a choice of menus
from which the organizer will preselect for the entire group.
Preceding the award presentations, a motivational speaker is
often invited to address the athletes. Typically a local sport hero or
sport reporter is a good, affordable choice. A slide or video show is
also fitting during dinner or at the end of the evening after the awards
presentations. In addition, you may wish to contact the office of the
mayor or governor to see if the mayor or governor, or a representa-
tive, can attend. If no one is able to attend, request a letter that can be
read during your ceremonies.
If awards (e.g., certificates, trophies) are to be distributed, be sure
to bring one or two extras just in case. The setup and testing of audio-
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CHAPTER 3 DESIGNING, PLANNING, AND CONTROLLING EVENT LOGISTICS 71

visual equipment, especially the microphone and slide/video projec-


tor, is an important consideration, particularly when using a facility
unfamiliar to you.

NEGOTIATING HOTEL ROOM BLOCKS


The first step in negotiating a hotel room block is to understand the
importance and value of what your event brings to a property.
Remember, the business of hotels is to first sell beds, then food and
beverage, and finally meeting space.
The amount of leverage you have when negotiating arrangements
depends primarily upon the size of the group, as well as the time of
year. According to Richard Kenah, president of TravelSport, “The
magic number is 10 rooms.” Once this threshold is hit, the negotiation
leverage swings toward the event organizer. Additional leverage is
acquired if the room block is reserved during a slow time of year. The
coordinator of a golf tournament would receive an excellent price on
lodging if the tournament is scheduled in October at a resort near the
beach or in a ski area where the weather is still good for golf but not
for swimming or skiing. Likewise, if the city that you are traveling to
does not have a convention scheduled, the downtown hotels become
more flexible in negotiations. In general, weekend room rates are
more negotiable.
The opportunity for repeat and dependable business is also very
important to hotels. If the hotel knows that your event will return to
the property year in and out and that the chance of cancellation or
nonpayment is extremely rare, the likelihood of a more favorable con-
tract increases. Room attrition (guests departing earlier than expect-
ed) is another factor considered in negotiations. To assist in keeping
your hotel record good, event organizers should explain the
event/tournament structure (selection and elimination process) and
work closely with the hotel to monitor the allocated number of hotel
rooms blocked for the event. Within a minimum of 3 months before
the event, a specific room block number should be provided to the
hotel, and at 30 days before the event, the organizer must decide if
they will guarantee any of the unsold rooms or release the block. For
events where teams are selected within one or two weeks of the event,
this policy will need to be adjusted. Another suggestion is to require
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72 THE ULTIMATE GUIDE TO SPORTS MARKETING

a two-night prepaid deposit, nonrefundable one month out. “This


drastically reduced the number of double bookings and guarantees at
least two nights” exclaims Peggie Knorra, account executive for
Quality Hotel & Suites at Courthouse Plaza in Arlington, Virginia.
Naming the hotel as the “host” or “official” hotel also helps in
negotiations. To encourage event participants to stay in the “host”
hotel, be sure to incorporate hotel information in all collateral material,
including the registration brochure, the event’s Web site, and in any
other direct-mail pieces. An emphasis should be placed on the price
and convenience of the host property. Hotel brochures should also be
included in the preregistration packet as a stand-alone price and/or
mailed to all registered participants as far in advance as possible. For
large events, it would be wise for organizers to negotiate with different-
priced accommodations in the area so that participants may choose
between a high-quality or economic property. This is especially true
when a discounted property is located adjacent to the “official” hotel.
If the event is a marquee event and provides high visibility, you
should seek an exclusive hotel sponsor. The terms of the sponsorship
are such that in exchange for event recognition and associated bene-
fits, the hotel sponsor will provide a specific number of room nights
plus a discounted year-round rate for the host organization. This is
how Doubletree Hotels became a sponsor of the Champions Tennis
Tournament. The amount of complimentary rooms range anywhere
from 10 to 500 depending on the value of the sponsorship.
The amount of food and beverage your group requires also plays
into the negotiations. Professional sport teams and most collegiate
revenue sport teams have at least two full meals during each visit
serving up to 100 people. Road races may plan a preevent pasta party
at the hotel. Other events may hold an awards banquet.
Similarly, the potential for the hotel to earn additional income
from incidental charges is another negotiating point. Obviously, pro-
fessional athletes have more disposable income to spend on room
service, telephone calls, movies, and mini-bars, but many NCAA
Division I athletes also receive per diems that are frequently spent
within the hotel. This strategy does not work for teams requesting all
incidentals be turned off.
Finally, one of the negotiation strategies most frequently recom-
mended is relationship building. Insist on working with only one
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CHAPTER 3 DESIGNING, PLANNING, AND CONTROLLING EVENT LOGISTICS 73

hotel representative who will handle all your requests from rooms to
meals. This not only simplifies your life but also forces one person to
be responsible and accountable to your group. By developing a close
working relationship, this person can also serve as your internal
champion should any problems develop.
Now that you have your ammunition, the next step is to use it to
negotiate favorable contract terms. The items most negotiable include
room rates, a suite for the event organizer, early arrival and late
checkout, bus parking, cots or roll-a-way beds at no cost, free use of
audiovisual equipment and the fitness gym, storage space, and com-
plimentary meals for coaches.
Before ever meeting with a hotel representative, however, do your
research. Find out what hotels are in the area, the average rate, avail-
ability, and the exact location within the city. If you find out that it is
a busy time of year for the hotel, ask why. You may also want to ask
what other groups are booked into the hotel at the time of your event.
This information may help to determine if you should look else-
where. The location of the hotel is important—not only to determine
the closeness to practice and competition venues but for proximity to
food and entertainment.
For those who prefer to outsource this responsibility of securing
hotel accommodations, consider the following options. Most conven-
tion and visitors bureaus (CVBs) designate one person to handle hotel
requests. All you do is call the local CVB and ask them to issue a hotel
lead. These leads are sent to all properties in the area with a descrip-
tion of services required. The CVB will either ask you a series of ques-
tions related to your needs or perhaps fax a form to be completed.
You can then ask the bureau to collect and package all the names and
information about properties interested in hosting your group or
request that each hotel contact you directly. This is a no-lose situation
for you, since most CVBs do not charge for this service and you retain
all negotiating power.
Another option is to use a sports-travel specialist such as Dirk Smith
with Sports Destination Network, Inc., and Eddie Bishop, whose job is
to negotiate for your team the most favorable hotel contract. These spe-
cialists usually have experience in both the sport and travel businesses
and have numerous hotel contacts. Most sport representatives are
placed on retainer by properties, thus eliminating the possible conflict
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74 THE ULTIMATE GUIDE TO SPORTS MARKETING

of interest connected to commission-based compensation. However, it is


always wise to inquire how the consultant is being compensated.
Whether negotiating yourself or working with a sports-travel rep-
resentative, it is important to understand the hotel business and the
leverage you bring to the table. Also, always confirm the specifics of
your hotel arrangements in writing. This is especially important as
personnel may change within the term of the contract.

BOOKENDS AND OTHER CONFLICTS


The events that occur before, during, and following your event—
bookend events—have special significance for logistical planning. We
have previously discussed the first logistical concern about arrivals,
parking, ticketing, and seating. Other events scheduled too closely to
the starting time for your event may cause traffic jams and resulting
confusion. You need to survey all departments and agencies, includ-
ing the local convention and visitors bureau, to be aware of all events
that will be held near the time of your event.
Another concern with bookend events is housing for your ath-
letes, officials, staff, media, and spectators. When another major event
is held in your host city at the same time, there is a risk that this event
may consume all available hotel space. Study your hotel agreements
carefully to make certain the hotel or hotels are firmly committed to
your organization through a specific date and time.
The possibility of a bookend situation for the sport event can also
have positive effects. You can purposely select an event to piggyback
your event. You may be able not only to boost attendance but also to
share promotional expenses with the management of the other event
or the local convention and visitors bureau. Research name entertain-
ment that will be in the area during your event. If you decide to book
this act, your costs could be substantially reduced.
Furthermore, when creating a bookend situation, you create a
greater economic benefit for the local community because visitors are
likely to remain in the area for an extended period and spend more
money. At the same time, be selective so that the bookend event com-
plements rather than overshadows your event, distracting the media.
These logistical concerns are only a starting part for your overall
analysis. Most international and national sport federations have
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CHAPTER 3 DESIGNING, PLANNING, AND CONTROLLING EVENT LOGISTICS 75

detailed organizational guidelines outlining logistical requirements


for hosting their specific events. Refer to Chapter 11 for more sport
specific logistical information and Chapter 12 for bid proposal infor-
mation.

BEGINNING THE LOGISTICAL PLANNING CYCLE


Once you have identified all of the logistical concerns of your specif-
ic event, the logistical planning cycle commences. This cycle begins
with turning the brainstorm or creative idea into a solid form through
a system such as a chart or time line. This has been compared to the
difference between a dream and a goal; a goal is only a dream . . .
written down. Figure 3-7 lists in sequence some of the steps needed
to plan a sport event.
This schedule is incomplete for a number of reasons. First, four
months is usually too short a time for a planning period. Missing from
this schedule is a date for each activity to both commence and to be
completed. You may use “COB” for close of business, provided every-

Figure 3-7

Action Plan
Date Activity Person responsible
1 Oct. 01 Brainstorming meeting M. Smith & committee
5 Nov. 01 Select date, contract site Legal
11 Dec. 01 Site inspection Operations
21 Jan. 02 Contract vendors Legal
25 Jan. 02 Design marketing campaign Marketing
5 Feb. 02 Ad campaign commences Marketing
15 Feb. 02 Interview schedule begins Marketing, PR
20 Feb. 02 Site setup commences Operations
21 Feb. 02 Site setup complete, inspect Operations, legal
22 Feb. 02 Media day at site Marketing, PR
23 Feb. 02 Event date Operations
24 Feb. 02 Tear down event site Operations
25 Feb. 02 Accounting, reconciliation Financial
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76 THE ULTIMATE GUIDE TO SPORTS MARKETING

one in your organization and vendors agree on the appropriate clos-


ing time. Better still, assign a specific time to each activity to ensure a
precise and therefore nonconflicting schedule with other activities. For
example, the electricity needs to be installed before the caterer arrives
and the tents need to be erected before the decorator can begin. When
precision planning is implemented, you will find little opportunity for
details to slip through cracks in your logistical reasoning.
As the event date draws closer and you begin to layer your organ-
ization with new team members who may not know how they fit into
the big picture, an event production plan or schedule should be cre-
ated that provides minute-by-minute directions and helps place
everyone in their appropriate roles. Appendix 2 contains a sample
production plan for a basketball game halftime show. The
Lillehammer case study further illustrates the importance of a well-
conceived and well-followed action plan.
Lillehammer Logistical Case Study
The importance of detailed logistical planning can be seen in
the opening ceremony at the 1994 Winter Olympic Games in
Lillehammer, Norway. Although the performance itself was
brilliant, many ticket holders were unable to get to their seats
in time to enjoy it, and by the end of the ceremony, 11 specta-
tors were hospitalized with broken bones. The reasons for
such complications are multifaceted.
First, all spectators were funneled through one entrance.
No direction was given to general standing admission ticket
holders and reserved seat ticket holders about their seating
location. The result was a mad crush of people in one area not
knowing what to do. General admission ticket holders stood
in the stadium aisles, blocking the way for reserved ticket
holders trying to get to their seats. Everyone in the stadium
area, including security and ushers, was wearing a white plas-
tic poncho for television aesthetics, so it was difficult to iden-
tify persons with authority. Lisa Delpy Neirotti recognized an
official volunteer and asked, “Why aren’t you checking tick-
ets?” The reply was, “It won’t help anyway.” As the rush
became more intense, security and ushers simply merged
with the spectators.
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CHAPTER 3 DESIGNING, PLANNING, AND CONTROLLING EVENT LOGISTICS 77

Another safety consideration was the steep and icy incline


all 40,000 spectators had to climb to reach the stadium.
LOOC’s environmental efforts precluded putting salt on the
grounds. Unfortunately, this left everyone slipping and slid-
ing up and down the mountain. A veteran sport manager, Hill
Carrow, recommended that a work crew be assigned to con-
tinually spread gravel along the busiest walkways. Although
the Norwegians were gracious hosts, they forgot that the rest
of the world was not used to such slippery conditions and
perhaps not as physically fit to challenge the elements.
Producer Dan Witkowski has summarized the science of logistics into
four commandments: “If God gave Moses Ten Commandments to
run his life, a successful sport event can be controlled by four key
commandments.” (See Figure 3-8.) Keep in mind, however, the advice
provided by Barry Glassman: “The best way to learn how to produce
a sport event is to attend and participate in as many as possible, par-
ticularly your competitors. There is no need to reinvent the wheel,
just learn how to make it better.”

Figure 3-8

Cardinal Rules for Planning Large-Scale Productions


for Major Sport Events According to Dan Witkowski
First Commandment: The Show Must Not Upstage the Sport
No matter how great your show may be, the primary reason that people are
buying a ticket is to see a sport being played.
Peter Rozelle, the brilliant commissioner of the National Football Leagues
and the genius behind the Super Bowl, successfully made the last Sunday in
January the unofficial American holiday. (Actually, the Super Bowl is observed
by more people than many official holidays.) Rozelle and his staff were careful
to have a balanced mix of sport and entertainment to appeal to a huge audience.
Even if you are not a football fan, chances are you have attended a Super Bowl
party or watched the spectacular pregame or halftime extravaganzas. Keep in
mind that while the show is important, people ultimately come to watch a sport
event.
Second Commandment: Plan, Plan, Plan
There is no such thing as overplanning. If your event is outdoors, you had
better know the exact time of sunrise, sunset, dusk, when the sun will be in the
continued on next page
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78 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 3-8 continued

spectators’ eyes, what direction the wind will be from, and what the average
wind speed is in the stadium at that time of year. However, compiling these
facts does not mean your event is a sure bet, but it forces you to think of all the
contingencies you may have to implement.
Before God got his current job, perhaps he was an event producer. I know
of very few sport events that have actually been canceled because of rain. A
Super Bowl halftime show has never been rained out. No matter how
sophisticated the computer equipment for forecasting weather, we rely on the
Old Farmer’s Almanac more than anything else for scheduling rehearsals and
performances. It is also consulted every year before the date of the Academy
Awards is decided . . . honest!
By thinking “what if?” during your preproduction process, you can deal
with those last-minute crises that bombard you the last few days before the live
event. Contingency planning forces you to think things through.
Third Commandment: Overcast Your Cast and Crew
Always overcast 25 to 40 percent more people than you need for your show if
you are using volunteers. If your show requires 1,000 people, cast 1,250 to 1,400.
No matter how much fun a show sounds like in the beginning, it is a lot of hard
work for the volunteers. Respect their time and do not waste it. Do not rehearse
more than necessary, and keep people busy when they are scheduled. If you
have a thousand people waiting for rehearsal with nothing to do because the
props or costumes have not been taken out of storage, that is the equivalent of
wasting one-half year of a working person’s time!
Even if you are well organized, people will drop out because of conflicts
with work, school, transportation, or other social commitments. Make sure you
communicate the total rehearsal schedule and time commitment when you
recruit volunteers. However, have plenty of understudies ready to step in so
you are not caught short.
Fourth Commandment: Use Technology to Improve the Show
The most important tools of a sport event producer are a dictation recorder and
a camcorder. The dictation recorder should be used to log all your production
notes during the preproduction and rehearsal sage when ideas are coming in so
fast you don’t have time to write them down.
If you have a secretary or assistant, have this person transcribe the
microcassettes or your staff-written notes for you. Then the notes will be ready
at your next production meeting, that same night after rehearsal, or the next
morning.
The camcorder can serve the same function for rehearsals. It allows
choreographers, directors, costume dressers, dancers, and so forth to see the
problems on tape. In particular, during a big production of a ceremony or
halftime show, choreographers are trying to work out small problems, and they
don’t often see the big picture. However, a camcorder—set up in the bleachers

continued on next page


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CHAPTER 3 DESIGNING, PLANNING, AND CONTROLLING EVENT LOGISTICS 79

Figure 3-8 continued

or in the audience and shooting a side, constant picture of the field or stage—
will allow the production team to analyze what must be done to make the show
attractive from the point of view of the audience or television.
Final Note: Following these rules will not guarantee a successful sport event
production, but it will greatly increase your chances of success.

The myriad of details that affect logistical planning often cloud


one’s overall view of the purpose of the event. In Chapter 4, you will
be able once again to see the forest for the trees as you explore the
importance of hospitality and protocol.

GAME HIGHLIGHTS

• Remember that the term logistics means “what is reasonable.”


• Notice the activities before and after your sport event because
they will directly affect your planning.
• Identify the key elements for success and logistical personnel
necessary to begin your planning. Athlete, VIP, media, and
crowd arrival and departure patterns are critical influences on
your logistical staffing needs.
• When deciding on your sport event, consider that the location
(indoors or out) and the number of public venues will determine
scheduling, staffing, and other critical factors.
• Establish an organizational chart of all staff positions to enable
communications.
• Develop an action plan that accounts for each sport event task
and the person responsible for each.
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C H
4
A P T E R

PROVIDING
HOSPITALITY AT
SPORT EVENTS
Some of us will do our jobs well and some will not,
but we will all be judged by only one thing—the
result.
Vince Lombardi

W HAT ARE THE REQUIRED INGREDIENTS to produce an


entertaining, profitable, and memorable sport hospi-
tality program?
Regardless of the type of sport event, there will always
be a hospitality component involved, whether a simple
reception or a multiple-day sponsor village. At sport events,
hospitality is most often provided for the media, officials,
athletes, and sponsors. The extent and organization of the
hospitality program, however, will vary based on the type
and size of event, objective of the program, location, and
budget. For smaller events, the hospitality program may be
detailed to a staff member or volunteer who will arrange for
the location, décor, food, beverage, and entertainment. Most
81

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82 THE ULTIMATE GUIDE TO SPORTS MARKETING

of the time, such a hospitality offering will be held in a conference or


meeting room within or adjacent to the sport event venue or under a
tent if the event is held outdoors. Typically, there will only be one hos-
pitality center for all constituent groups. The food is frequently donat-
ed by a local restaurant in exchange for an in-kind sponsorship (refer
to Chapter 9 on sponsorship). Similarly, in-kind decorations can be
secured through a local florist or garden center, and the entertainment
could be as simple as a stereo or television set.
For larger events, a company is outsourced to plan, manage, and
sometimes sell the event hospitality program (see Chapter 3 regard-
ing vendors). This is the case for events such as the U.S. Open, Super
Bowl, or Olympic Games. Ridgewell Catering, for example, will ser-
vice over 30 tents and feed close to 10,000 people during the Super
Bowl. In such instances, the hospitality vendor will interface with the
event organizing committee, as well as with each of the corporate
sponsors, concerning individual hospitality needs and preferences.

QUESTIONS AND CONSIDERATIONS


WHEN PURCHASING A HOSPITALITY PACKAGE
When purchasing a hospitality package for a sport event, be sure to
ask what the package includes. For example, at some events it
includes only tickets and parking, and catering and decorations are
additional. Since corporate entertaining is a very personal matter, it is
important for the hospitality company to offer the flexibility for cre-
ating unique packages. Susan Lacz, principal of Ridgewell’s Catering,
explains that “tents are often sold with a standard level of décor and
a laundry list of extras such as ambient lighting, upgraded carpet,
ceiling liners, technology centers, and built-in bars. Some clients pre-
fer a no-frills package, while others want food served throughout the
event and unique décor specific to the sport or to the company.”
The cost of hospitality packages for sport events range from
$35,000 to $150,000 depending on the exclusivity of the event and its
geographic location. There are also different-priced packages within
events depending on the size and location of the tent at the event.
Catering charges run from $75 to $150 per guest plus tax and service
depending on the type and amount of food ordered. Often there is a
minimum catering fee per package, so be sure to ask prior to pur-
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CHAPTER 4 PROVIDING HOSPITALITY AT SPORT EVENTS 83

chasing. “One of the most efficient and affordable deals around is the
Outback Sky Suites,” exclaims Lee Coorigan, tournament director of
the State Farm Senior Golf Tournament. Outback Steak brings in
trucks that fold together to create indoor sky suites that pop right up
on the green and come with running water, stereo system, theatre-
style seating, and a bar. For the tournament week, corporations could
purchase a standard 32- by 22-foot sky suite for $35,000 to $40,000 or
the jumbo suite for $50,000 including catering. Compare this to
$80,000 for a one-day tent at the Preakness plus $40,000 in catering
charges. Michele Tennery, manager of corporate meetings and events
for CapitalOne, recommends asking the following questions related
to sport event hospitality packages:
• If 200 tickets come with the package, can two-thirds of them be
used one day?
• If I want to purchase more tickets, what is the cost and is there a
cap on how many I can buy?
• Where is the parking for my guests and how many parking
passes do I receive?
• Do I have access to the event logo to produce merchandise for
guests or must I purchase from the event supplier.
• What type of signage will identify the tent (dimensions, color,
style) and do I have any discretion as to how it looks? If it is a
flag on top of the tent, what happens if there is no breeze? Some
companies may want a lot of visibility, while others want to be
more discreet about their hospitality investment.
• Are there any advertising opportunities included in the package
(e.g., an advertisement in the program) or could we purchase at
a reduced rate?
• How far in advance do we have to lock in to the event?
• Can we staff the tent with our own people? Will our staff need
to use a ticket or how many “staff” passes are included? This is
important when wanting to retain a high ratio between staff and
client.
• Where will our tent be located? Can we include a clause stating
that our tent will not be located in the same area as a competi-
tor’s tent or a company known for rowdy parties?
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84 THE ULTIMATE GUIDE TO SPORTS MARKETING

• Are we allowed any clubhouse badges and is it possible to get


more?
• Is there anyone special coming through the tent area and can we
schedule them to stop in our tent?
• Can we be included in the opening ceremonies or receive invita-
tions to any exclusive events (e.g., VIP cocktail parties)?
At larger events, the hospitality company as part of its vendor
contract commonly handles the hospitality for media, athletes, offi-
cials, and VIPs. These individual hospitality centers should be locat-
ed in a convenient and secure location for each group—for example,
close to or inside the media center.

À LA CARTE AND INDIVIDUAL HOSPITALITY


Another hospitality option that may be more compatible with the
objectives of a company and less expensive than a packaged hospi-
tality program is to organize an à la carte hospitality experience.
This is also the way to go for companies that may be locked out of
an event that they are not sponsoring. Carl Bach, managing direc-
tor of Reliance National Insurance (UK), provides an excellent
example:
Together with my secretary, we personally invited 20 of our
customers and asked them to meet at the Dug Out sport bar,
reserved a table at the establishment which was serving a pre-
set Game meal, [and] hired a luxury bus to pick the group up
from the bar, bring to the game, and return at the end of the
competition. Team caps were distributed on the way to the
game, and once inside the gate, souvenir programs were pro-
vided and refreshments offered to all guests. On the return
bus ride, results of a football pool contest conducted earlier in
the evening were announced and prizes were awarded.
A new option for individuals or companies that want to host just a
few guests is to purchase tickets at a higher price that allow access to
a more upscale concession area. Two examples include the Pavillion
at the Kemper Open in Maryland and the Hunt Club at the Gold Cup
in Virginia. These higher-priced tickets allow the holder to enter a
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CHAPTER 4 PROVIDING HOSPITALITY AT SPORT EVENTS 85

special area with comfortable and sheltered seating, an open bar, and
private restrooms.

WINNING THE HOSPITALITY GAME:


10 EFFECTIVE HOSPITALITY STRATEGIES
From the invitations through the departure of the guest, there are cer-
tain strategies that can ensure success:
1. Know your guests’ needs and expectations. Determine in advance
the appropriate sport event for your target audience. Identify
your prospective guests’ interests by asking their friends or
coworkers or by sending a questionnaire to a random sample of
potential attendees. Once an event is selected, the next step is to
determine if your guests are participants or spectators. The par-
ticipants will want to be active and entertained continuously
throughout the sport event, while the spectators would prefer to
relax and enjoy the action on the field rather than be distracted
by other activities. Often, this is a difficult balancing act.
Questions regarding alcoholic beverages, smoking, specific
forms of entertainment, and foods should also be asked. Ham
sandwiches for a Jewish audience are never appreciated, while
meatless entrees on Fridays during Lent will be gratefully
acknowledged by practicing Catholics. For frequent invitees, cre-
ate a file listing their educational background, food preferences,
social profile, allergies, and medical history, even their golf
handicap. If a group has been hosted before, it is especially criti-
cal that you find out what worked and what did not. At annual
events, each year’s activities should build upon those of the pre-
vious one.
Once you know the avocational interests of your guests, you
can begin planning for those activities that will not only please
them but also drive their actions and feelings toward your pre-
determined goal. For example, if your survey reveals that your
guests are golfers, you may wish to rent a portable miniature
golf course and hold a putting contest at your hospitality event.
Or perhaps your guests are volleyball fans. Setting up a portable
volleyball net with a Nerf volleyball provides not only an inter-
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86 THE ULTIMATE GUIDE TO SPORTS MARKETING

active activity but may create considerable excitement as the


other guests enjoy the food and drink while watching your
championship players having fun.
2. Plan with the understanding of what the sport event is expected to
achieve for the guest. Is the goal networking for business purpos-
es? Is the sport event an incentive award for high sales produc-
tivity? A promotional activity to build brand awareness of a new
product? A vehicle for entertaining prospective customers or
thanking them for previous orders? Or simply a way to create
goodwill between the guests and the corporate sponsor?
By understanding the precise purpose of the sport event, you
can develop strategies to achieve specific goals. A program that
supports two or more goals may make things more complicated
but still possible.
The host of a hospitality spot event serves at the bonding
agent who glues the guests to one another and the entire group
to the goal of the event. Station greeters at the entrance to the
hospitality event welcome each guest and offer directions to the
first of a series of event activities. Each guest is entitled to cer-
tain rights when they accept an invitation. Figure 4-1 is a guide
to guarantee that each guest will enjoy the sport event.
3. Understand the arrival patterns of your guests. Will they trickle in or
all arrive in one wave or in several waves? Your staffing for food
and beverage must match the arrival time of guests.
4. Plan according to what has preceded or will follow the guests’ arrival. For
example, if the event is scheduled to begin at 6 p.m., it is unlikely
that your guests have eaten dinner. Consequently, your planning
must allow for food substantial enough to satisfy their hunger yet
light enough to keep them from snoring through the event that fol-
lows. Make sure that athletes on your guest list understand the
schedule and the menu. At the World University Games, athletes
invited to the reception at 5:00 p.m. assumed that they would be
fed a dinner. Instead, they were served only snacks. When the
group returned to the athlete’s village, the dining area was closed.
When planning catering for the media, do not forget that
journalists work long hours and that food service should be
readily available as long as the press center is open.
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CHAPTER 4 PROVIDING HOSPITALITY AT SPORT EVENTS 87

Figure 4-1

The Guest’s Bill of Rights


By accepting this invitation…
• I am entitled to arrive at and depart from this sport event easily, safely, and
efficiently.
• I am entitled to be greeted as soon as I enter the event site.
• I am entitled to be introduced to other guests by the host.
• I am entitled to be comforted with a beverage, food, or other tactile experi-
ence within three minutes of my arrival.
• I am entitled to enjoy pleasant surprises to establish a favorable memory of
this sport event.

5. Create appealing invitations. Nontraditional mailing containers—


tubes, boxes, and so on—capture the attention of the prospective
guest. The Lower Delaware Chapter of the International Special
Events Society (IS) used a brief videotape including messages
from the mayor of Philadelphia and the former governor of
Delaware to invite guests to a fifth anniversary celebration for
the organization. The videotape was labeled “A Personal
Message for ______________,” with the name of the recipient.
From a bottle containing a secret map with the instructions to
the regatta, to an embroidered headband with the instruction to
the starting line of a 10K run, to an imprinted golf ball with the
date and time of your hole-in-one shoot-out, the possibilities for
innovation are endless. Avoid loose glitter, scents, or other items
that may leave behind an unwanted residue when opened.
According to award-winning special event designer Sue Ann
Drobbin of Washington, D.C., “A successful invitation grabs the
prospective guests’ attention and also sends a subliminal mes-
sage that generates positive excitement about the event.” An
invitation imprinted on a jigsaw puzzle may become the talk of
the office as prospective guests seek help in piecing together
your message. The more people start talking about your event
the greater the potential response. Another creative example is to
send a teaser invitation on card stock with the message “Hurry!
Call this toll-free number to attend the hottest sport event this
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88 THE ULTIMATE GUIDE TO SPORTS MARKETING

month! Operators are standing by with more information. Call


now!” The prospective guest who calls will get a recording with
the voice of a famous sport personality who invites them to the
party, provides them with the necessary details, and asks them
to RSVP when they hear the beep. You then mail a second post-
card to each confirmed guest with travel directions and other
critical information. Perhaps the best advice is to design the invi-
tation so that it becomes a souvenir of the event, a keepsake to
remind guests of a wonderful experience for years to come.
Delivering the invitation is often taken for granted as an inci-
dental process and expense, but it is probably the most impor-
tant step in getting a positive response from prospective guests.
Like comedy, timing in invitation delivery is everything.
Midweek deliveries are generally better than Mondays so your
invitation is less likely to compete with dozens of other mail
items. For hand-delivered invitations, early morning is usually
best because it is easier to find recipients in their offices then.
Private couriers costumed as referees or umpires make a big
impact entering the traditional office setting. If you prefer to use
overnight delivery services, ask for a volume discount. Fax and
e-mail are also becoming popular vehicles to deliver invitations
and to gather RSVPs. Washington Sport and Entertainment cre-
ated a three-dimensional e-mail invitation that when opened
resounded of cheering fans. This invitation was mailed to all the
high-tech firms in the Washington Metro area, inviting them to a
season ticket open house.
Of course, the following components should always be
included in an invitation: (a)Who should attend; (b)what is
being offered; (c) the date, time, and location of the event; (d)
driving or other travel directions; and (e) instructions on how to
respond and a deadline to do so.
6. Understand the protocol for sport events. Most sport organizations
have specific guidelines for the protocol of their individual sport
events. Be sure to ask for these guidelines and to inquire about
any other traditions the organization may have. Figure 4-2 pro-
vides some basic event guidelines as described by Hugh
Wakeham, event marketing director for Live Entertainment of
Canada, Inc.
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CHAPTER 4 PROVIDING HOSPITALITY AT SPORT EVENTS 89

Figure 4-2

Protocol Guidelines According to Hugh Wakeham


Entrance of Athletes
• Two teams (e.g., at a football game): guest team enters first, followed by the
home team.
• Multiple teams (e.g., at an international game): guest team enters the stadi-
um in alphabetical order according to the language of the home team, fol-
lowed by the home team. For the Olympic Games, Greece enters first, fol-
lowed by all other teams in alphabetical order with the exception of the host
country, which enters last.
Anthems
• Two teams: guest anthem first, followed by the host anthem.
• International event: official anthem only.
Flag Raising
• Host flag center: guests’ flags placed alternately right and left according to
precedence of flags.
• Olympic flag (or other international flag) takes the central “host” position,
with other flags arranged either alphabetically (the flags of participating
nations) or according to precedence (if they are made up of the host country,
state, and city).

If a dignitary is invited to attend a sport event, that person’s


social secretary or someone from the dignitaries office will cer-
tainly inform you of proper protocol and security measures.
Refer to the reference list at the end of the chapter for additional
readings on protocol.
7. Focus on the first and final impressions; you never have a second
chance. No matter what type of event, it is critical to concentrate
your hospitality planning on areas that will have the greatest
impact on your guests. The second-greatest impact is the first
impression. The greatest impact is the final impression. With this
said, consider the following illustration of how to move an event
from low-key to high-key effectively. As guests arrive, walk them
through a sport time tunnel where, with black-and-white slides
and taped voices with music and cheers, they can recall fond
memories of a great moment in sports. Then as they exit the
other end of the tunnel, have some of the current athletes assem-
bled in living color to sign autographs and pose for photos.
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90 THE ULTIMATE GUIDE TO SPORTS MARKETING

Often, guests arrive in an agitated state because of traffic or


some other factor and miss the first impression entirely. Through
proper planning, you can turn this around by posting a greeter
to assist the guests to ease into the party atmosphere and offer
refreshments to help them relax. This is also a good reason to
make the final impression more positive and meaningful, the
one they go home with. Whether you introduce a surprise sport
Hall of Famer as a guest speaker, stage an elaborate aerial fire-
works and laser show, or simply present each departing guest
with a special souvenir of the occasion, the final impression is an
opportunity that should not be missed.
In terms of party favors, the items should mention or reflect
the company or group giving the gift and have a useful life well
beyond the event itself. Depending on the item, the name or
logo of the sponsor may be emblazoned or imprinted (hats or T-
shirts) or may be noted by a small insert or tag (crystal or jewel-
ry). Novelties should also be distributed when they have the
greatest impact and offer the least burden to the receiver. For
example, you could provide hats to guests so that they can wear
them during the game, and at the end of the evening, you could
award prizes of sweatshirts and jackets that are much bulkier to
carry.
For major events such as the Olympic Games or World Cup
Soccer, identification badges, limited-edition clothing, and sou-
venir pins can become sources of great pride for the wearer.
Upon arrival at high-profile events, guests of sponsors receive a
goody bag filled with specially designed and marked clothing
(enough for his or her entire stay), an identity card, and a hand-
ful of special-edition pins. For many guests, pin trading is the
most exciting event of the Games and an unforgettable memory.
Event organizers must also provide souvenir gifts for the
athletes and media. For events with a large number of repeat
participants, it is wise to vary the gifts from year to year. This is
not always possible, however, as frequently these gifts are pro-
vided by the event sponsors.
8. Don’t forget the amenities. These are the extras that matter. Whether
you are managing sport event hospitality for a few friends or
thousands of prospective clients, design and manage each guest
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CHAPTER 4 PROVIDING HOSPITALITY AT SPORT EVENTS 91

experience as though you were hosting a reception for close


friends. In addition to the personal assistance at entry and/or
parking gates and the special gifts for guests, welcome signs
(conforming to local, state, federal ordinances) should be located
in airports, train stations, bus depots, city streets and buildings,
hotels, and sport and entertainment venues. For the 2001 NBA
All-Star Game, host Washington, D.C., went the extra mile and
provided special All-Star promotional pins to all hospitality
providers (taxicab drivers, hotel and restaurant staff) in order to
increase enthusiasm for the event. Information desks should also
be posted in the guests’ hotel lobby providing event schedules
and general information on activities and dining in the city as
well as maps and directions.
9. Make the plan flexible for nonstop fun. Sport event planners fre-
quently err in planning so rigidly that they cannot satisfy guests’
last-minute whims and changes in attitude. For example, if the
sponsor’s representative asks for the band to play music from a
particular era or to speed up the food service, the flexibility of
the event planner is that key to success.
Too often planners are solely concerned with the tools of the
event (music, food, and decorations) and ignore the sole purpose
of the event, the guests’ response. Professional sport event man-
agers should circulate among the guests throughout the event,
asking questions such as “How’s the music?” “How’s the food?”
“Having a good time?” This frequent check ensures that they
can correct any problem immediately.
If a complaint is heard, the client should be notified immedi-
ately and apologies should be provided to the guest. If possible,
offer the guest something extra such as a bottle of wine for his or
her table or additional souvenir gifts.
Continually diagnose attitudinal alterations by standing to
the side and observing the body language of guests. Are they
straining to hear one another? Do they appear physically rest-
less? When the event requires a new element, use the guidelines
for change shown in Figure 4-3.
Your sport event closet should be filled with ideas like this
just in case you have to make a last-minute adjustment to guar-
antee nonstop excitement, fun, and success. Likewise, don’t be
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92 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 4-3

Changing the Game Plan


1. When guests appear fidgety, add a physical activity such as dancing, games,
a slide or video program, entertainment, or some other activity to engage
them.
2. To calm guests, open a room or area where quite conversation can be held.
3. To keep things interesting during a lengthy banquet or seated dinner, have
the waiters appear every 15 minutes with a new dessert delicacy to keep the
guests interested while they converse with one another.
4. Use a live video camera to provide instant pregame reports from the sport
venue. Closed-circuit technology enables you to be sure your guests are on
the sidelines right up until game time.
5. Introduce a surprise element such a cheerleading team, high school marching
band, or team mascot to liven up the event when the energy level lags.

afraid to cancel a scheduled activity or entertainment that is


unsuitable to the current mood of the event.
10. Seek suggestions for improvement. Always find out from your guests
how you can improve your event to achieve greater success the
next time. This can be accomplished through a formal written
evaluation, telephone interview, or more informal exit interview.
You also should conduct an internal review with your staff.
Marketing organizations will, of course, take this process
several steps further and determine through sales reports
whether the sport event contributed to the sponsor’s productivi-
ty. In addition, an examination of the morale of the sales force
and other employees who helped plan and produce the sport
event may determine some key information that will be useful
in planning future programs.
Publish the results of your survey and share this information
with prospective clients or sponsors and your own staff.

WORKING WITHIN A BUDGET


Although many of the ideas suggested in the preceding section may
seem expensive, you can find ways to be creative and put on a first-
class hospitality event without overspending. First consider the time
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CHAPTER 4 PROVIDING HOSPITALITY AT SPORT EVENTS 93

of day you plan to host the event. If you want quality but can’t afford
quantity, schedule the event before or after mealtimes. This timing
allows you to serve light, elegant hors d’oeuvres.
If your guest list is extremely long and you want to reduce the
number of RSVPs, consider hosting the event at an odd time or incon-
venient location. For example, if the sport event ends at 6:00 p.m.,
start the party at 8:30 p.m. If the sport event is held at the Madison
Square Garden, host the reception at the World Financial Center in
lower Manhattan. These strategies force the guest to make a con-
scious decision whether or not to attend.
Richard Perelman, an event management and information servic-
es consultant with Perelman, Pioneer & Company in Los Angles, sug-
gests comparison shopping among competitors on price, quality, and
service if planning time permits. For larger programs, this involves
writing an RFP and going through a bidding process, as discussed in
Chapter 3.
Event producers should also be good value engineers. Value engi-
neering means working within a budget to select the quality and
quantity of items that best meet the guests’ expectations. For exam-
ple, the requirements for cowboys on vacation at a rodeo are not the
same as those for corporate guests attending Wimbledon. If the deci-
sion is between swizzle sticks or more food, which would you select
for the cowboys? Additional suggestions on ways to reduce a sport
event budget are provided in Chapter 9.

A FINAL WORD ON SPORT EVENT HOSPITALITY


Producers of corporate hospitality programs at the Super Bowl and
Olympic Games share the same secrets of success with Little League
baseball fund-raising dinner organizers of 10K fun-run award cere-
mony organizers. To achieve success through sport event hospitality,
know the needs and expectations of your guests, plan a series of
activities or strategies to satisfy these needs and exceed their expecta-
tions, and, above all, make your planning flexible enough to allow for
last-minute adjustments to ensure that each guest is enjoying a non-
stop positive experience.
Whether you are serving hot dogs and beer or prime rib and
champagne, the challenge is the same. Plan and deliver a level of
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94 THE ULTIMATE GUIDE TO SPORTS MARKETING

hospitality that the guest would not normally experience. Use your
imagination and creativity to transform your basic program into a
sport special event. Extra services that can make the difference
between an ordinary experience and a memorable one do not neces-
sarily require great financial resources. Sometimes, the extra edge lies
in working harder to meet the needs of guests beyond their expecta-
tion—what is called “sweat equity.” Hospitality involves many steps
and critical factors. Figure 4-4 is a checklist to assist you in develop-
ing the hospitality for your event.
Hospitality and protocol issues are often derived from customs or
traditions rather than rules of law. Chapter 5 examines standard con-
tracts and typical negotiations that will further ensure a hospitable
sport event for you and your guests.

Figure 4-4

Sport Event Hospitality Checklist


1. Decide whether to produce the hospitality activities internally or externally.
2. If external help is required, create and disseminate a request for proposal
(RFP) to qualified vendors. Qualify the vendors by determining their years
of experience and the type of events they have produced previously. Most
important, find out the typical number of people in attendance at their
events. A vendor who is well qualified to provide hospitality for 50 may be
ill-equipped to handle 5,000. The reverse is often true as well.
3. Identify your goals and objectives and include these in a position paper
with your RFP to circulate to your staff.
4. Produce a detailed plan book or manual of operations.
5. Identify and secure appropriate insurance, paying special attention to host
liability coverage.
6. Identify and secure all necessary permits for local municipality, police, fire,
or health departments in order to put up temporary structures such as tents
and provide food service.
7. Develop a practical budget and amend as needed during the development
of the hospitality program.
8. Once you have solicited vendor bids, review them with expert guidance,
negotiate fairly, and seek approval from all parties.
9. Select a menu appropriate to the time of the event and the dietary require-
ments of the guests.
continued on next page
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CHAPTER 4 PROVIDING HOSPITALITY AT SPORT EVENTS 95

Figure 4-4 continued

10. Establish an estimated attendance number and price per person.


11. Determine when the final guarantee will be required by the caterer (usually
36 to 72 hours in advance of the event). Remember, when determining the
final guarantee, typically 20 percent of the guests who have confirmed for a
free event will not show up. In addition, 10 percent of the guests who did
not confirm will arrive at the last minute. Therefore, you are ready to guar-
antee most agreements, the caterer will automatically provide a 5 percent
overage (excess) clause. This means that the caterer will provide enough
food to serve 5 percent more guests than you have officially guaranteed.
Therefore, guarantee only 15 percent under the actual number of confirmed
reservations. Also take into consideration weather, conflicting events, and
major world events that night keep guests from attending. Remember, the
guarantee means you are guaranteeing payment for a specific number of
guests. Using this formula could save you thousands of dollars.
12. Identify and contract for appropriate gifts, amenities, advertising special-
ties, and souvenirs to give to your guests. Depending on the complexity of
the design and the location of the manufacturer, allow 6 to 36 weeks to
have these items ready for distribution.
13. Create printed materials including invitation, passes, confirmation notices,
maps, signs, and programs. Schedule mailing operations.
14. Schedule all transportation needs, confirm insurance coverage, and provide
communications for drivers to handle any last-minute changes.

GAME HIGHLIGHTS

• Know the needs and expectations of your guests and develop a


plan to satisfy these needs while exceeding their expectations.
Use flexibility to continually fine-tune this process.
• Remember that the first impression is not necessarily the most
important. However, the final impression is critical to creating a
positive memory of the sport event.
• Design and deliver invitations that attract a positive response
from the guest. Be creative! Produce a unique product that will
capture the guests’ imagination and make them want to attend.
• Measure and evaluate your success through regular temperature
checks of the guests’ “fun quotient” during the sport event and
through a more formal process afterward.
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96 THE ULTIMATE GUIDE TO SPORTS MARKETING

REFERENCES FOR PROTOCOL

American Sport Education Program. Event Management for Sport


Directors. Champaign, IL: Human Kinetics, 1996.
Cagholm, Christopher. When Business East Meets Business West: The
Guide to Practice and Protocol in the Pacific Rim. New York: John
Wiley & Sons, 1991.
Claiborne, Craig. Elements of Etiquette. New York: William Morrow,
1992.
Gjovig, Bruce. Pardon Me, Your Manners Are Showing: Professional
Etiquette, Protocol and Diplomacy. Grand Forks, ND: Center for
Innovation, 1992.
Mack, William P. and Royal W. Connell. Naval Ceremonies, Customs,
and Traditions. Annapolis, MD: Naval Institute Press, 1980.
McCaffrey, Mary Jane and Pauline Innis. Protocol: The Complete
Handbook of Diplomatic, Official and Social Usage. Poole, Dorset,
England: Devon Publishing Company, 1997.
Post, Peggy. Emily Post’s Etiquette. 16th ed. New York: HarperCollins,
1997.
Post, Peggy and Peter Post. The Etiquette Advantage in Business:
Personal Skills for Professional Success. New York: Harper
Resource, 1999.
Swartz, Oretha D. Service Etiquette. Annapolis, MD: Naval Institute
Press, 1988.
Tuckerman, Nancy, Nancy Dunnan, and Jackie Aher. The Amy
Vanderbilt Complete Book of Etiquette. New York: Doubleday, 2000.
Graham 05 10/5/01 1:28 PM Page 97

C H
5
A P T E R

NEGOTIATIONS
AND CONTRACTS
I ask a player, “Are you happy with this contract?”
He’ll say, yes, he is. “Fine,” I tell him, “I’m happy,
too. We’re both happy. But I have one provision
before we sign this contract. There will not be any
renegotiations.”
Arnold (Red) Auerbach,
former general manager, Boston Celtics

W
maze?
HAT IS NEGOTIABLE, whom do you contract, and how do
you find your way through the sport event legal

The need for an experienced attorney in sport event


management and marketing is especially important for
new events where a number of contracts must be drafted
and risk management plans designed. These attorneys
must possess expertise in many different areas connected
with sport events and may be asked to perform tasks
that include athlete contract negotiations, financial and tax
considerations, venue concessions and merchandising
contracts, sponsorship deals, domestic and international

97

Copyright 2001 The McGraw-Hill Companies, Inc. Click Here for Terms of Use.
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98 THE ULTIMATE GUIDE TO SPORTS MARKETING

television rights, spectator litigation, insurance, and related hospital-


ity matters such as RFPs and vendor contracts.
In each of these categories, early management decisions and phi-
losophy concerning control, size, and goals of the event, and the
potential legal and commercial exposure for the organizer of the event,
typically determine the number of negotiations conducted and con-
tracts to be drafted and executed by the respective parties. If the event
director and management team wish to promote a single event, make
a one-time profit, and control all aspects of the event, they may veer
away from vendor and subcontractor agreements. On the other hand,
a host committee interested in running a well-organized event for ath-
letes, sponsors, spectators, television broadcasters, and the communi-
ty at large—all within a balanced budget—may subcontract to a
number of experts to ensure the success of the event for both short-
term and long-term benefits. From a practical viewpoint, most estab-
lished event promoters now include a variety of professionals on their
staff to address issues typically associated with a large-scale event.
The fact remains that when organizing any sport event, some
standard negotiations will take place about the responsibilities of the
various parties and the corresponding financial considerations and
contracts that need to be executed. Always remember that contractu-
al agreements protect the respective interests of all parties involved.
This chapter will help guide you through the various terms of a con-
tract that should be negotiated and included in a contract.

OPTION TO RENEW AND RIGHT OF FIRST REFUSAL


According to sponsorship guru Lesa Ukman, whose Chicago-based
newsletter—IEG Sponsorship Report—tracks the industry: The option
to renew gives the existing sponsor the option to extend the sponsor-
ship agreement when the initial term of the contract expires. The right
of first refusal requires the event rights-holder to present a new pro-
posal to the existing sponsor and to allow that sponsor to make an
offer to retain sponsorship rights. The event producer can accept the
sponsor’s offer, or if lower than the full asking price, he or she can try
to find an offer of greater value. A lower offer cannot be accepted.
Likewise, the right of first refusal allows the sponsor to walk away
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CHAPTER 5 NEGOTIATIONS AND CONTRACTS 99

from negotiations with the option to match any competitor’s offer.


Depending on the length of the initial contract, a specific time
frame—usually eight months to one year before a contract expires—
should be designated in which a sponsor must notify the sport event
owner of intent to continue involvement in the event. This agreement
allows the sport event owner ample lead time to secure another spon-
sor. Some sponsors may also demand an approval clause for certain
sponsorship categories. Coca-Cola, for example, may not want Taco
Bell or Kentucky Fried Chicken to be a sponsor because of their affil-
iation with Pepsi.

TERMINATION AND ARBITRATION


All contracts should include provisions for dispute resolution and
termination. Make certain your written instruments outline reason-
able cause for termination and a time frame after which all terms are
null and void and the parties are free to negotiate with others. You
should also include dispute-resolution provisions, such as arbitration
pursuant to the rules of the American Arbitration Association (AAA),
in order to avoid potentially high litigation costs.

RISK MANAGEMENT AND INSURANCE


To limit your liability, your master agreements must incorporate lan-
guage pertinent to risk management and minimum insurance
requirements for all parties (see Figure 5-1). From naming specific
parties as additional insurers to providing certificates of insurance by
certain dates and times, these important considerations should be
spelled out carefully in writing and checked by your attorney and
insurance broker for compliance with your current policies. In any
sport event, insurance plays a very significant role in ensuring appro-
priate protection to the promoter, venue, sponsors, television broad-
casters, and performers. Examples of typical insurance coverage for
an event include general liability insurance, athlete/performer med-
ical insurance, cancellation insurance, television mechanical break-
down insurance, worker’s compensation, prize indemnity, and so
forth (see Chapter 6 for more information about insurance).
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100 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 5-1

Risk Management/Insurance Action Plan


1. Describe the parties’ responsibilities requiring safety compliance with federal
(e.g., Occupational Safety Health Administration [OSHA]), state, and local codes.
2. Determine the minimum amount of insurance required by each party, the
names of the additional insureds, the date and time that certificates are to be
delivered to the sport event manager, and other items required by your cur-
rent insurance coverage. Ensure that your existing policy conforms to any
special event you are promoting.
3. Include a clause requiring each party to exercise due care in the administra-
tion of duties to ensure the safety of its organization’s employees, your per-
sonnel, and the public at large.
4. Determine if waivers of indemnity are required as attachments to the agree-
ment.
5. Determine through legal counsel the wisdom of each party indemnifying the
other. Always receive indemnification from the other contracting party
because you do not want to be responsible for its action or inaction.

SPONSOR AND SUPPLIER AGREEMENTS


The most important item in contracts between sponsors and the sport
event organizing committee is exclusivity—the exclusive sponsorship
right per product category or service. This matter should also be dis-
cussed with potential licensees, television partners, and service sub-
contractors such as caterers and hospitality providers.
The importance of exclusivity is illustrated in professional bas-
ketball. The NBA has certain rights that it sells, and the team, the
venue, and broadcasters have specific rights that each can sell. With
all these different rights, a sponsor must consider the various possi-
bilities for ambush marketing and close the holes as much as possible.
Ambush marketing is the strategy employed by non-rights-holding
companies to create an appearance as if they are official event spon-
sors. Another term for this activity is parasite marketing.
Nike employed ambush marketing techniques during the 1996
Summer Olympic Games in Atlanta by erecting a large interactive
exposition next to Coca-Cola’s Olympic City, while Reebok was the
“Official Footwear Supplier” of the Games. At the 1998 Olympic
Games in Nagano, Fuji tried to ambush Kodak, the official film of the
Winter Olympic Games, by setting up nonofficial photo centers next
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CHAPTER 5 NEGOTIATIONS AND CONTRACTS 101

to the main press center where they distributed and developed Fuji
film for free. As part of their sponsorship rights, Kodak offered this
service inside the press center but for Kodak film only.
Control over exclusivity is easier for less developed sports where
one sanctioning body is largely responsible for the entire show.
Another illustration of the difficulties related to exclusivity is the
California State High School Associations, which sold an exclusive
sponsorship to Reebok for specific state championships, while sig-
nage at individual schools and championship venues was purchased
directly from Nike. Simply put, exclusivity is difficult to control, but
it would be impossible without contractual stipulations.
As a general rule, a sponsor will require exclusivity related to its
particular industry category (e.g., sportswear, soft drinks). Be careful,
however, to clearly define the product category. Give a specific descrip-
tion of the category, with the names of particular competitors and prod-
ucts. In the fast-food category, for example, McDonald’s may want
pizza and Pizza Hut or sub sandwiches and Subway to be mentioned
to avoid confusion about pizza and subs as a category of fast food.
When approving sponsor promotions, it is also important to be
sure that they do not conflict with another sponsor’s rights. In 1994,
there was a problem between two World Cup Soccer sponsors:
MasterCard, who had the international exclusive rights to both debit
and credit cards, and Sprint, who had the national exclusive right to
local and long-distance telephone. As a promotion, Sprint created
World Cup logoed phone cards and MasterCard sued, saying that
these cards infringed on their “debit card” rights. The case was arbi-
trated and settled by allowing Sprint to give away, not sell, the existing
phone cards but did not allow them to produce any additional ones.
Another category that often causes confusion is the financial insti-
tutions (e.g., Bank of America) category. The description of this cate-
gory typically does not include credit cards; these are considered to
be in a separate category. This means that even if the sponsoring
financial institution may produce a credit card, it cannot promote or
associate it with the event.

Trademark Rights
Identification parameters and procedural details must be included for
event trademark approvals. All promotional and marketing material,
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102 THE ULTIMATE GUIDE TO SPORTS MARKETING

including premiums produced by a sponsor, must be examined and


approved by a representative within the organization. The purpose of
this scrutiny is to control the quality of the trademarks and to avoid
possible abuse or infringement of rights. To avoid excessive delays in
the approval process, contracts should specify a turnaround time and
contingencies if conditions are not met. A design handbook should be
provided to each sponsor, with guidelines on appropriate trademark
and logo usage. It is important that the guidelines specify promo-
tional time limits on the use of the trademarks and logos and where
they can be used. Lisa Delpy Neirotti noticed boxes of M&M candies
displaying the Olympic rights on store shelves and Olympic stickers
on U.S. Postal Service trucks for months after each of these organiza-
tions Olympic contracts expired.

Territorial Rights
This issue is not as important for local events as it is with national and
international events. For the Olympic Games or World Cup Soccer,
sponsors are solicited at all levels—international, national, and
local—so if specific categories and boundaries are not identified and
preserved, exclusivity may be lost. International sponsors have the
authority to use the sport event trademarks in all countries partici-
pating in the event, whereas national sponsors are restricted to using
the trademark within the host country. With international contracts, it
is important to specify in writing that any fluctuation in the currency
exchange rate will not adversely affect the amount due in U.S. dollars.
Territorial restrictions also apply to television and merchandising
rights. For example, NBC has paid for the exclusive Olympic broad-
cast rights to the United States only. Merchandise licensees may have
rights to the European or North American market only.
Since the Internet has no boundaries, specific language must be
crafted to protect all rights-holders. This could include an Internet
rights-holder per language or per sport, or licensing the content
rights to various Internet sites. Since the Internet is still a fairly new,
unproven entity, no definitive rules have been established. Lisa Delpy
Neirotti is keeping abreast of this dynamic issue and working with
the International Olympic Committee and others to determine the
most appropriate strategy for sport events to pursue with regard to
the Internet.
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CHAPTER 5 NEGOTIATIONS AND CONTRACTS 103

Sponsorship Fees
The sponsorship agreement should clearly define the specific amount
of cash and/or in-kind services, and it must be accepted by all parties
and include payment schedules and delivery or service dates.
Requests for additional contributions are never welcome after con-
tracts have been signed.
As far as the value of in-kind goods and services, be sure to
stipulate in the contract the specific amount of product or the exact
service to be delivered, as there may be a big difference in what you
think a dollar value will purchase and at what price the sponsor may
attribute to these goods or services. For many events, sponsorship
contracts now require that in addition to the agreed-upon rights fees
and services, the sponsor must guarantee a certain amount of dollars
be allocated toward marketing the event. This not only helps you pro-
mote the event but encourages the company to leverage their spon-
sorship to maximize returns.
Specific rights and privileges included in the sponsorship fee also
should be clearly defined. The opportunity for accommodations, hos-
pitality, signage, and tickets are frequently provided. For smaller,
low-profile events, these are frequently included as a benefit in the
sponsorship fee.
Typically, a sponsorship fee simply gives the sponsor the right to
spend more money on such items. It is important for a sponsor to ask
about the type, location, and cost of tickets, as well as accommoda-
tions and hospitality. World Cup Soccer sponsors, for example, were
not aware that the tickets allocated to them were not premium seats
and only discovered later that premium seats could be arranged for
at an additional charge. The opportunity for on-site sales, samples, or
pouring rights should also be outlined in the contract.
As far as working with other sponsors or licensees, a “best effort”
clause is typically included in the contract to encourage the purchase
of premiums or goods from official sponsors or licensees. Best effort
implies that companies involved in the event will utilize each other’s
products or services as long as prices are competitive. Visa, for exam-
ple, uses UPS exclusively for overnight delivery because both com-
panies are sponsors of the Olympics.
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104 THE ULTIMATE GUIDE TO SPORTS MARKETING

TELEVISION
Television negotiations are becoming more complex—and more lucra-
tive—with the increase in cable, satellite, and Internet options and the
rapidly increasing international interest in U.S. sport events. Most tel-
evision contracts include exclusivity and territorial stipulations. The
television rights-holder can then opt to sublicense certain amounts of
the programming but generally needs written consent of the licensor.
For example, the Winter Olympics offered so many hours of program-
ming that CBS granted a license, for an appropriate sum, to TNT that
allowed them to broadcast Olympic coverage on specific days at cer-
tain hours. Contracts must also include specifications for satellite
rights if a rights-holder has the capacity to produce both feeds.
Another common element included in television contracts is the
preferential treatment given event sponsors regarding commercial
time slots. According to Howard Stupp, director of Legal Affairs for
the International Olympic Committee (IOC), “This is especially
important for Olympic sponsors, since there are no advertising bill-
boards allowed in the competition areas.” The agreement basically
offers sponsors right of first refusal at negotiations with the television
rights-holder but not necessarily any price discount. Other contract
stipulations in a television agreement include the control of “on-
screen” or “superimposed” credits during coverage, the location and
number of cameras allowed, the basic technical support provided by
the host committee, and copyright credit.
The issue of appropriate “news access” for competitors should
also be delineated to protect the rights-holder. The IOC established
the “3  2  3” rule whereby Olympic coverage can be aired by non-
rights-holders three times per day, in two-minute excerpts, and
spaced a minimum of three hours apart.

PERSONNEL
The most important part of a personnel contract is the specific,
detailed responsibility of the individual, including when the employ-
ee is to begin and end work, payment schedules, tax withholding,
reports procedures, and provisions for changes in the contract (e.g.,
extension or increase responsibilities). All contracts should also spec-
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CHAPTER 5 NEGOTIATIONS AND CONTRACTS 105

ify the state where contract litigation is to be carried out. It is in the


best interest of employees to be identified as secured parties, mean-
ing that they will be paid first if the event goes bankrupt. Secured
contract employees are typically paid 25 percent up front, 50 percent
with satisfactory progress, and the final 25 percent upon completion
of the work contracted. A variety of employees are necessary to pro-
duce a sport event, including full-time and part-time employees (pri-
marily salaried), hourly or temporary workers, and independent
contractors and consultants.

SPORT CELEBRITIES
Chapter 7 discusses the reasons for hiring or including a sport celebrity
in your event. However, you need to spell out the details in personnel
contracts for sport celebrities. Frequently, a corporation may employ an
athlete for a set number of hours—you must delineate how the hours
are to be scheduled and accounted for. Does the celebrity have the right
to refuse an engagement? How far in advance must the engagement be
scheduled? Is there a minimum and maximum amount of time the
celebrity must spend at an event? What type of travel and hotel accom-
modations will be provided? All contracts must include these provi-
sions, as well as a termination clause for immoral behavior. Some
contracts also include specific athletic achievements for the contract to
remain in full force (e.g., the athlete must remain ranked in the top five
in the world).

NOT-FOR-PROFIT BENEFICIARIES
Chapter 13 discusses sport events and not-for-profit charities in
detail, but it is important to highlight certain contractual agreements
between for-profit event organizers and not-for-profit beneficiaries.
Charitable organizations should be careful not to provide services far
greater in value than the dollar amount to be received. Be sure to limit
the number of volunteers and the number of work hours required. If
the contract requests the use of the not-for-profit postage benefit,
check whether your organization is also responsible for the packag-
ing of the materials to be mailed. Contract inclusions like this can
cause a great inconvenience for not-for-profit organizations and may
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106 THE ULTIMATE GUIDE TO SPORTS MARKETING

eat away any potential revenues. Since not-for-profit beneficiaries


typically do not have direct control over the management of the event
other than providing necessary services, many request minimum
guarantees from the sport event producer to protect their interests.

VENUE CONTRACTS
Suppose that the venue has permanent corporate signage, and your
organization requires a “clean” venue (i.e., no signs) or wants to host
an event sponsored by a competitor company. Then negotiations
about covering up existing signage may be necessary or existing con-
tracts renegotiated. Venues can also apply for a variance of contract
(wherein the agreement is amended), suspending all other agree-
ments for a specific period of time while the sport event tenant occu-
pies the venue. Current concession and signage agreements often
include a certain amount of days or number of events in which a
venue can allow a competing company to have a presence in the
venue. The lease rate, security responsibility, other personnel respon-
sibility, concessions, and indemnification are the primary provisions
to be covered in a venue contract.

LICENSEES
Category exclusivity on licensed goods depends on the size of the
market for an event and the amount of income desired from license
fees. Obviously, the price for a license will be less if the category is
nonexclusive (more than one licensee may purchase this product cat-
egory), but sometimes the sum of two parts is greater than the one.
The Lillehammer Olympic Organizing Committee (LOOC), for exam-
ple, decided to grant exclusivity because of its small market, whereas
the Atlanta Committee for the Olympic Games (ACOG) opted for
nonexclusive licensing agreements because of the large demand
anticipated for licensed products. Nonexclusive licensees should
request that the contract include a limit on the number of licensees
per category. A licensee contract should also stipulate the minimum
guarantee required and the royalty payments. Guarantees are based
on expected sales, and royalties are a percentage of sales that is paid
to the owner of the rights (licensor).
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CHAPTER 5 NEGOTIATIONS AND CONTRACTS 107

Royalty fees typically run between 5 to 15 percent depending on


the value of the marks. Royalty payments are applied to the guarantee,
but if enough royalties are not earned over the period of the contract,
the licensee must pay the guarantee out of pocket. Once the minimum
guarantee is reached, additional royalties continue to be paid to the
licensor. Many licensees of the 1996 Atlanta Olympic Games were dis-
appointed with the efforts of the Organizing Committee to follow
through on marketing promises regarding the Games marks and mas-
cot and claimed that because of this they did not reach their guarantees
and should not be responsible for paying the entire guarantee.
Restrictions prohibiting licensees from selling official licensed
items to nonevent sponsors are also included in some contracts. This
protects sponsors from ambush marketing. Nonevent sponsors like to
provide customers with licensed premiums (a prize, bonus, or reward
given as an inducement) to associate with the event. Refer to Chapter
10 for more information on merchandising, and see Appendix 1-C for
a sample licensing contract.

HOSPITALITY
On-site sport event hospitality may be offered as an exclusive benefit
included in the corporate sponsorship package or marketed to com-
panies as an additional revenue stream for the event. Either way,
someone must provide the services; an external management compa-
ny specializing in hospitality either purchases the on-site hospitality
rights or is employed as a subcontractor.
Frequently, only sponsors of the event are offered the opportuni-
ty to purchase hospitality packages, and site selection is on a first-
come, first-served basis or depends on the corporation’s tenure as a
sponsor of the event. If this is not the case, any company may request
information about hospitality packages and their availability. For
both the event organizer and the company purchasing a hospitality
package, it is important to ensure the right to quality control of the
provider. Thus, if either the event organizers or the clients are dissat-
isfied with the level of service, selection of food, décor, or any other
item, they have the option of requesting reasonable changes that, if
not fulfilled, entitle them to a refund. (See Figure 5-2 and Chapter 4
for more information on hospitality.)
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108 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 5-2

Hospitality Action Plan


• Determine who is responsible for purchasing hospitality services (e.g., event
organizer, sponsor, venue).
• Decide what company will provide hospitality services.
• Determine if the hospitality package is comprehensive.
• Make sure the hospitality package is not in conflict with current sponsors (e.g.,
the hospitality company serves Budweiser while your event sponsor is Miller).
• Include a quality control clause in the contract.

WHEN TO UTILIZE LEGAL COUNSEL


The involvement of an attorney depends entirely on the originality
and complexity of the event and, correspondingly, the contract terms.
Sample contracts for standard events are available in the
International Event Group’s Legal Guide. Jennifer Jordan-Lock, an
attorney who works with sport events, explains:
Sport events have unique features that require advice and
counsel from an attorney trained to identify potential pitfalls
and prevent loopholes in your contracts. For example, a stan-
dard rental agreement used by convention centers contains
language preventing any operation that involves hazardous
waste. But if your event will have a photo processing service
in this venue, then you have to negotiate the removal of that
language from the contract because the chemicals used to
process film contain hazardous materials.
Another example illustrating the importance of understanding the
unique features and scope of sport events before signing a contract is
the agreement Electronic Data Systems (EDS) of Dallas, Texas, made
to produce all the results of the 1992 Barcelona Olympic Games.
Whoever signed the contract did not fully understand the extent of
the Olympic event program (e.g., men and women, individuals and
teams, the various swim and running distances and heats) and did
not stipulate the type of hardware that they needed. Instead, EDS was
provided a less powerful machine that required additional program-
ming and staffing resources.
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CHAPTER 5 NEGOTIATIONS AND CONTRACTS 109

Lesa Ukman suggests that you create your own contract and pres-
ent it to sponsors. This will eliminate the time and expense of hiring
a lawyer to go item by item through each new sponsor’s contract.
Lawyers will advise you that it is better to work from your contract
and begin negotiations, rather than rewrite the contract from your
negotiating party. Some corporations, like Kodak, always generate
their own contracts and send them out before they are even interest-
ed in your property in order to lock things up. You must be careful
about this action. Look at your own skills and abilities to see whether
you can handle the negotiations yourself or need an attorney or
agency to represent you.
An attorney is not always recommended for repeat events with
relatively few changes and when both parties are satisfied. The gen-
eral attitude of sport event managers toward attorneys is “we are
short on time, and lawyers are long on words.”

WHEN TO CONSULT A SPORT


MANAGEMENT/MARKETING CONSULTANT
Unless you have specific and extensive expertise in the sport event
being negotiated, it may be a wise investment to hire an individual or
firm with expertise in this area. For sponsors, this expert can bring
more negotiating power to the table and, at least for the first time
around, help manage and showcase your sponsorship activities. As
mentioned before, companies unfamiliar with the intricacies of sport
more often than not find themselves overextended in fulfilling their
sport event contracts.
For event organizers, contracting to an outside agency is especial-
ly important for an inaugural event, for events lacking an adequate
workforce, or for events that will be in multiple cities over an extend-
ed period of time. From the beginning, job descriptions must be
extremely clear on role responsibilities, reporting, and follow-up.
Some firms offer a variety of services, including strategic planning,
event management, sponsorship marketing, publicity, hospitality,
minority marketing, merchandising rights negotiations, athletes
endorsements, sales promotion, sport facility consulting, quantitative
sponsorship analysis, and promotional products.
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110 THE ULTIMATE GUIDE TO SPORTS MARKETING

Agency Agreements
Michael Jordan’s agent, David Falk, was quoted in the Marquette
University Sports Law Journal:
One type of negotiation tactic is to literally walk away. I do not
recommend this unless the negotiations are fruitless. Instead,
I prefer to set a rigid time frame to keep the pressure on. In
one situation, I purposely scheduled my return flight in such
a way to imply that time was of the essence.
If you decide that an outside agency is necessary to help manage your
event, be sure to select a firm that has experience working on events
like yours and understands your needs. See Figure 5-3.

LITIGATION, ARBITRATION,
AND ALTERNATIVE DISPUTE SYSTEMS
Whether a contract is written or verbal (and it should always be writ-
ten), if one party performed a duty that it would not normally pro-
vide and could prove that its work benefited the other party, but there
has been no compensation for the performance, then its case for liti-
gation is considered strong. In the same vein, if a plaintiff can provide
that he or she is the injured party because the defendant did not com-
plete the work specified in the agreement, the plaintiff may be able to
file a legitimate complaint against the other party.
With the U.S. court system gridlocked in civil litigation, injured
parties in increasing numbers are taking their complaints to a certi-
fied arbitrator who is trained to issue a nonbinding judgment. This
saves both parties 50 percent or more of the cost of a trial and is much

Figure 5-3

Checklist for Selecting an Outside Agency


_____ Solicit bids from different companies.
_____ Ask for references and speak with previous clients.
_____ Consider the company’s historical sport involvement and reputation.
_____ Know what services they offer.
_____ Feel comfortable with the account representative.
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CHAPTER 5 NEGOTIATIONS AND CONTRACTS 111

more expedient. It is not unusual today for a civil case to take


upwards of five years to go to trial, whereas arbitration can find both
parties sitting face-to-face in a few months trying to reach a solution.
It is recommended that you include an arbitration clause in your
master sport event agreement with all parties. The clause states sim-
ply that in the event of a dispute the parties agree to seek arbitration.
Make sure to use a trained arbitrator recommended by a reputable
group such as the American Arbitration Association. The location of
the arbitration will be a negotiable issue.

CLOSING ARGUMENTS
Although verbal agreements confirmed through a handshake
between two top-level people can be upheld in a court of law, a prob-
lem arises when one of these individuals leaves his place of employ-
ment and the terms of the agreement become lost in confusion. For
this reason alone, you should insist on a formal written contract.
Jennifer Jordan-Lock suggests that you remember the “four corners”
rule of contract law: Unless there is a clause in the contract that refers
to another document, the totality of the agreement between two par-
ties is represented by the terms contained “within the four corners” of
the contract.
William “Woody” Woodruff, a former Xerox employee and now a
consultant in event marketing, highly recommends that you “take the
time to review the final written contract in detail, as this version does
not always reflect previous editions or reflect changes that you ver-
bally thought were agreed upon.” Woody adds, “Do not rely on the
organizing committee to really understand what it takes from a spon-
sor’s point of view, particularly in the area of service.”
Contracts may range from 1 to 500 pages, but the important con-
sideration is not the length but that all parties are clear on their role,
responsibilities, rights, and the consequences of any breach in the
contract. (See Appendix 1 for sample agreements.)
Negotiations and agreements cannot prevent a catastrophe. That
is why Chapter 6 on risk management must be used in tandem with
this one.
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112 THE ULTIMATE GUIDE TO SPORTS MARKETING

GAME HIGHLIGHTS

• Make sure your sponsorship agreements include clauses related


to exclusivity, territorial rights, option to renew, first right of
refusal, termination options, arbitration, insurance provisions,
time frames for trademark and logo use, guidelines for trade-
mark approval, and the rights and responsibilities of the sponsor
if applicable.
• Provide guidelines in your television agreements on coordina-
tion with sponsors, sublicensing privileges, and news access
coverage for non-rights-holders.
• Include in your personnel agreements time periods of employ-
ment, specific responsibilities, reporting procedures, payments
schedules, and provisions for changes. These terms are also
applicable to agreements for sport celebrities.
• Ensure that all parties are in full agreement before signing any
legal contract.
• Stipulate in contracts the state in which all litigation is to be carried
out and include an arbitration clause to avoid the court system.
• Consider hiring an attorney to review first-time or very complex
or original contracts. However, developing your own contract is
more cost-effective over time.
• Do not rely on the host organizer to serve as your corporate
sponsor consultant. If you feel that you are not prepared to
negotiate effectively, seek external advice, at least for the first
round of negotiations.
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C H
6
A P T E R

RISK MANAGEMENT:
PROTECTING YOUR
INVESTMENT
That little white ball won’t move until you hit it, and
there’s nothing you can do after it is gone.
Babe Didrikson Zaharias, multitalented athlete
credited with opening the door to
the male-dominated domain of sport

H OW CAN YOU REDUCE THE RISK of injury to spectators and


participants, prevent inventory or personal theft, limit
potential financial losses from promotional contests, and
protect your event from catastrophic losses due to acts of
God?
There are numerous examples of injuries and violence
at sport events, including fans storming the field and being
crushed to death, fans trying to defy gravity falling from
their upper-tier seat, fans pelting snowballs or other
objects at players and officials, and fans rioting inside and
outside stadiums as a demonstration of their team alliance
or victory.
113

Copyright 2001 The McGraw-Hill Companies, Inc. Click Here for Terms of Use.
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114 THE ULTIMATE GUIDE TO SPORTS MARKETING

TELL IT TO THE JUDGE


In a comprehensive eight-year study of award and settlement
amounts in sports related cases, Gil Fried, M.A., J.D., University of
New Haven, reported that the majority of cases involved injuries
while swimming, followed by facility-related injuries, with the most
common liability at sports events being trips and falls and slip and
falls. (See Figures 6-1 and 6-2.) The survey analyzed 281 cases from
1989 through 1996 throughout the United States as reported in the
national publication From the Gym to the Jury. Of all cases, 22.77 per-
cent involved awards or settlements over $1 million, with the highest
jackpot cases reported in California followed by Texas, Pennsylvania,
and New York.
Jim Dalrymple, retired executive director of the Washington, D.C.,
Sports and Entertainment Commission, believes that the increase in
number of liability claims at stadiums directly correlates with the
leniency of courts in awarding damages against cities and sport ven-
ues. Dalrymple states: “When spectators travel to a stadium in the
snow and ice, you would think that there is an inherent known risk,
but somehow claims for slippage are continually awarded.” With this
being the case, sport event professionals must be prepared for all
challenges.

Figure 6-1

Most Frequent Activity in which Someone Was Injured


Activity Number of Cases
Swimming 56
Facility 32
Football 21
Administration 21 (i.e., breach of contract, Title IX, etc.)
Baseball 14
Basketball 13
Boating 11
Skating 10
Skiing 10
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CHAPTER 6 RISK MANAGEMENT: PROTECTING YOUR INVESTMENT 115

Figure 6-2

Most Common Incident Which Resulted in an Injury


Incident Number of Cases
Falls, slips, and trips 60
Accidents 41
Drownings 28
Collisions 26
Battery 21
Breach of contract 19
Diving 18
Discrimination 9
Broken equipment 7
Tackling 7
Medical malpractice 5
Equipment 4
Heart attacks 4
Sliding 3
Stepping 3
Foul balls/pucks 3

TRAINING: THE FIRST PREVENTATIVE MEASURE


Professional education programs such as the Crowd Management
Seminar sponsored by the International Association of Assembly
Managers (IAAM) and the annual risk management programs
offered by the International Special Event Society (ISES) Conference
for Professional Development address the most recent developments
in this field. University sport management programs also offer cours-
es in facility management, including risk management.
In addition, however, individual sport venues must assess the
infrastructure of their facilities to determine how to accommodate
present and future fans and implement internal training programs for
their staff.
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116 THE ULTIMATE GUIDE TO SPORTS MARKETING

RISK ASSESSMENT
Alexander Berlonghi, author of The Special Event Risk Management
Handbook (1990), believes the first step in identifying potential risks is
to conduct a detailed risk assessment of the event. To do this, event
managers may either hire a professional risk management consultant
or use the internal expertise of their staff. When you use your own
staff to identify potential risks, it is important to involve not only hor-
izontal management positions but also vertical staff. Ticket takers,
groundskeepers, security guards, and parking lot attendants, as well
as mid- and top-level management, should participate in this process.
(See Figure 6-3 for the format to use for this meeting.)

Figure 6-3

Risk Management Assessment Meeting


According to Alexander Berlonghi
1. Assign a knowledgeable person with excellent communication skills to facili-
tate this meeting. This may be the event director, the director of security, or
someone else who has the knowledge and experience to achieve the goals
you desire.
2. The facilitator should distribute a meeting notice less than two weeks before
the scheduled meeting to alert participants that they should come to the
meeting prepared to identify risks in their area and throughout the event.
3. At the beginning of the meeting, the facilitator should briefly describe the
seriousness of the agenda and ask for everyone’s help in staying focused on
identifying real threats that could jeopardize your event.
4. The group may be timid about beginning so the facilitator should suggest
one or two risks he or she has identified through research. For example, “The
parking areas need more light for the night events in order to help prevent
criminal conduct, and the ticket booths need rope and stanchions to establish
a lineup area for day-of-events sales. What do you think about that?” This
kind of inquiry will promote discussion that helps begin the dialogue and,
with continuous facilitation, ultimately helps you identify dozens of real
risks that can be easily reduced at little or no cost.
5. This meeting is a mind-mapping exercise. List every potential risk, real and
imagined, on a flip chart. This is similar to the SWOT analysis described in
Chapter 2. Ask the reporter to explain how the risk was identified and what
the potential risk is (e.g., injury, theft, bad public relations). Do not criticize
any risk at this point. Instead, dutifully list them all and collect as many as
possible before ending this step of the exercise.
continued on next page
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CHAPTER 6 RISK MANAGEMENT: PROTECTING YOUR INVESTMENT 117

Figure 6-3 continued

6. Once all risks have been listed, ask each reporter to estimate the total finan-
cial cost of his or her risk. With the understanding that this is an exercise,
encourage your associates to assign real dollar figures to each potential risk.
This helps the entire group recognize that each risk has the real potential of
reducing your bottom line revenue from the event. If the risk is one that is
covered by insurance, list an estimated dollar increase in your premium due
to the identified exposure.
7. Now that you have identified and assigned a cost to the potential risks,
encourage the group to act as risk management consultants and make recom-
mendations that will reduce the risks.
8. Before the meeting is adjourned, get agreement from the members of the
group that they have, to the best of their ability and with the most recent
information available, identified as many risks as possible. Ask them to
remain vigilant in reporting other risks that may emerge before, during, or
after the event.
9. Assign independent groups from this large group of risk managers to handle
the next stage: the actual risk management phase. Ask each small group to
design a variety of strategies that will effectively eliminate or reduce the risk
at the lowest possible cost to your organization.
Make certain that you document every step of this risk assessment meeting
from keeping an accurate attendance roster to creating an action plan of activi-
ties you will undertake to reduce the risks. Make certain this document is pre-
pared immediately following the meeting so that you can use it as a measuring
stick of your progress in managing the risks.

The risk assessment meeting serves several important and related


purposes. First, it is an excellent way for you to empower your line
staff and volunteers to take responsibility for identifying and manag-
ing risks. Safety is everyone’s responsibility, but unless you assign,
train, and monitor this activity, it may not become part of each per-
son’s job function. Second, you will benefit from the combined
expertise of the members of your organization as they share their
observations with you in a nonthreatening environment. Finally, you
will have taken a significant step toward achieving a standard of care
in your industry by convening this informational meeting.
If you should become the defendant in litigation, you will be able
to demonstrate in writing that you showed due care in working with
your team to identify and correct as many risks as possible to ensure
the protection of your valuables and the safety of your guests.
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118 THE ULTIMATE GUIDE TO SPORTS MARKETING

In addition, when organizers take possession of a property for pur-


poses of staging an event, the organizers take possession of the proper-
ty for a period of exclusive use. At the outset of that period, senior man-
agement should walk through the premises with a representative of the
owner of the facility. A written or videotaped record of the condition of
the premises and any inventory should be taken at this time. Similarly,
when possession is transferred back to the facility owner, senior man-
agement should be present. This person serves as a repository of infor-
mation about who bears responsibility for the existence of certain con-
ditions in the event that such conditions give rise to legal claims.

ATHLETE PROTECTION
Since the stabbing of tennis star Monica Seles and the attack on
Olympic ice skater Nancy Kerrigan, sport event managers have made
security for athletes a key area of concern. Barbara Perry, senior vice
president of International Management Group, emphasizes the
importance of walking through the sport venue—tracing the route of
an athlete from the locker room to the competition or media and hos-
pitality areas—and looking for vulnerable areas. Perry found that
older buildings in particular have many nooks and crannies to secure.
(See Figure 6-4 for tips concerning athlete protection.)

LOSS PREVENTION
Theft of property or money can be a significant problem in sport
event management. These acts range from box office robberies to

Figure 6-4

Athlete Protection Considerations


• Inspect the venue for vulnerable areas.
• Keep security discrete.
• Heighten the awareness of athletes toward the value of security precautions
(e.g., credential checks, metal detectors).
• Ensure that credentialing criteria specify reason for and location of access to
athlete (i.e., coach allowed in dressing room while family members restricted
to hospitality area to meet with athlete).
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CHAPTER 6 RISK MANAGEMENT: PROTECTING YOUR INVESTMENT 119

pickpockets, from pilferage of souvenir merchandise to counterfeit


tickets. The 1998 Gay Games in Amsterdam were expected to make
money until approximately $2 million came up missing. An investi-
gation of a previous employee is currently being conducted, and to
prevent future incidents, an accounting firm is hired to review books
every six months. Such checks and balances need to be in place to
protect all sport organizations. At the RFK Stadium in Washington,
D.C., Jim Dalrymple discovered that kids would sneak under the end
zone bleacher seats and steal bags and purses. To prevent this, fences
with gates had to be constructed to close off the ends of the bleachers
and ushers were placed at each gate.
Each sport event management organization has an implied
responsibility to prevent the loss of money and property at the sport
event. Three critical considerations must be reviewed prior to com-
mencing operations (see Figure 6-5).

STORAGE
The identification of a secure location not only for counting money
but also for selling tickets, storing inventory, and conducting contests
and prize-related activities is an important consideration for your loss
prevention program. By establishing a secure location for these high-
risk tasks, you will automatically reduce the opportunity for a bur-
glary or robbery resulting in a severe loss. To provide a secure loca-
tion for these tasks, follow the simple guidelines shown in Figure 6-6.
Access to your valuables is an issue that also includes the proper
credentialing of your personnel, media, athletes, trainers, coaches,
judges, staff, VIPs, and spectators (see Figure 6-7). Also, particular
information must be included on the credentials (see Figure 6-8).

Figure 6-5

Loss Prevention Considerations


1. Where will cash, receipts, and valuable inventory be stored?
2. How will access to cash and valuable inventory be provided?
3. Who will supervise your loss prevention program?
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120 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 6-6

Securing Your Valuables


1. Select a location with one entrance that is away from the usual spectator traffic.
2. Secure the storage area with a door that has a double bolt lock.
3. When possible, make sure the area is an interior room with additional
perimeter walls and a concrete floor.
4. Do not identify this room as a storage or counting room. Identify only box
office areas.
5. Find out who has access to this room, including previous occupants who
may still retain keys. When possible, change the lock or use additional
locking devices as safeguards.
6. When using collection boxes to accept admission or concession tickets, make
sure these boxes are secured and that only an appropriate authority has the
ability to unlock them.
7. The opening through which the ticket is passed should be the same size as
the ticket itself to prevent padding the box with bogus tickets.
8. When possible, chain this box to a secure location in the box office,
admission area, or concession operation unit.
9. Involve law enforcement experts in your planning.

ACCESS TO EVENTS
Early in your planning, determine how access will be set up to ensure
that only the proper persons enter secure areas. Security guards at
each entrance area must be fully briefed on different types of creden-
tials and specific access privileges. Figure 6-9 is a checklist to assist
you in developing a secure access plan for your sport event.
According to Terry Cooksey, a 10-year veteran of ticketing opera-
tions in Nashville, Tennessee, each ticket must contain at least five
basic pieces of information: pertinent event information, seating
information, policies unique to the event, applicable legal dis-
claimers, and the price. Cooksey suggests using a checklist when
designing your draft ticket (see Figure 6-10). Remember that if you
will be mailing tickets, first send a letter of confirmation asking for
any correction in address and/or ticket purchase. High-profile events
such as World Cup Soccer use two-day mail service to secure ticket
delivery.
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CHAPTER 6 RISK MANAGEMENT: PROTECTING YOUR INVESTMENT 121

Figure 6-7

Credentialing Procedures
1. Review previous credential procedures from past or similar events to deter-
mine requirements and areas of improvement.
2. State in writing all credential procedures for each group (e.g., staff, volun-
teers, athletes, officials, media, participants, VIPs, corporate sponsors).
3. Establish a secure credentialing area with ample space for waiting lines,
equipment, security, and other departments. Make certain electricity is avail-
able to operate cameras and other equipment and that telephone lines are
available for communications.
4. Identify and contract a photography vendor to provide cameras and film for
credentialing.
5. Conduct an orientation program for all staff issuing credentials.
6. Consider contingency plans for particular situations such as cameras becom-
ing nonoperational, loss of communications, gridlock among crowds in the
credentialing waiting area, theft, and other threats.
7. Keep all credential area signage low key to avoid attention.
8. Provide a separate line or area for athletes, VIPs, and media in recognition of
their status.
9. Maintain and protect a computer system that stores credential requests and
distribution information. Only persons with proper credentials or authority
should have access to this information in a secure place. If necessary, use the
services of a security expert to determine any loss of your information
through telephonic or even satellite transmission.

Figure 6-8

Critical Credential Information


• Name of credential holder
• Photograph of credential holder
• Code letter(s) for the credential purpose (e.g., press, VIP, official, volunteer,
athlete, coach, technical staff, medical staff, administrator)
• Code numbers and symbols detailing event access (e.g., VIP hospitality area,
athletes village, media center, competition area, locker rooms, box office,
warehouse, all events or specific events)
• Date of expiration or specific usage dates
• Country of origin
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122 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 6-9

Tickets, Please!
1. Use a focus group composed of experts in ticketing, security, admissions,
concessions, and other tasks in which loss prevention through admissions is
an important issue.
2. Ask for the ideas of these experts and then show samples of tickets and
credentials used at other successful sport events.
3. Create a draft policy that covers how credentials are granted, where they are
issued, how day-of-event changes in credentialing and lost credentials are
handled, and how fake and forged credentials are recognized.
4. Integrate your signage program with your credentialing process. It causes
confusion, for example, to accept only VIP passes at Gate E when the sign
above the admissions personnel reads “General Admissions Only.”
5. Establish a process for challenging tickets at the entrance and determining
how to resolve these problems. Who has the ultimate authority to grant
admission or change the procedure?
6. Remember that passes or credentials should be required for entry to all
secure areas such as the box office, the counting room, the warehouse or
storage areas, and other areas where valuables may be stored.
7. Does your organization or state or local laws prohibit scalping of tickets or
sale of unlicensed, unauthorized merchandise at your sport event? Make
sure you have a written policy to handle this possibility. If necessary, create
signs to warn individuals who may consider engaging in this activity.
8. Modern sport events often use an advanced ticketing program that has
sophisticated printing of the event logo to prevent duplication. Regardless of
the technique you use, it is essential that all admissions personnel receive
thorough training on how to recognize individualized credentials and tickets.
9. Future credentialing processes may ensure closer scrutiny by including a
fingerprint or retina sensor device that matches the recorded computer
database image. No two sets of fingerprints or retinas are exactly the same,
so this technology may finally end the rash of forgeries that have plagued
sport events.

HIRING STAFF
Finding and keeping good, honest employees is a challenge. The
good news is that while this burden may be more difficult than it was
two decades ago, it is not impossible. Barry Silberman reports that
“the key to hiring staff is to continually be on the lookout for quality
individuals.” He adds, “We typically hire interns who have served us
well and have caught on to the business. Rarely do we advertise.”
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CHAPTER 6 RISK MANAGEMENT: PROTECTING YOUR INVESTMENT 123

Figure 6-10

Critical Ticket Information


According to Terry Cooksey
Pertinence
• Name of event/opponent
• Location of event
• Day/date/time
Seating
• Section/row/seat
• Gate, portal information
• Facility map
Unique Policies for this Event
• Refunds/exchanges
• Lost tickets
• Prohibited items
• Weather (rain checks)
• Date/time subject to change (televised events)
Applicable Legal Disclaimers
Example: The management reserves the right to substitute performers.
Price
• Base amount
• Amount including applicable taxes
• Amount including applicable taxes and services charges
• Percentage of ticket price going to charity (if applicable)

You should personally select the individuals to supervise your


loss prevention program and its individual components, including
ticket sellers, concession merchandise supervisors, and other people
who collect, transfer, or sell valuable items. And when hiring securi-
ty, ask about their training. Not all states or jurisdictions require train-
ing for private security guards.
For the Super Bowl, the NFL hires a national security firm,
Contemporary Services Corporation (CSC), known for its experience
in sport events. This firm hires some of the best local security person-
nel but heavily supplements the staff with people who have no affil-
iation with the city or local friends who might want to attend. All
total, there is an 800-member trained security force in place to ensure
a safe and enjoyable event.
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124 THE ULTIMATE GUIDE TO SPORTS MARKETING

Despite all of the mechanical means to guard property, the final


responsibility lies with the personnel entrusted with these tasks. The
selection and supervision of personnel is the most critical step to mas-
ter to ensure superior loss prevention practices (see Figure 6-11).

TRANSPORTING THE GOODS


Lisa Delpy Neirotti, a veteran of numerous sport megaevents, states
that designing a smooth transportation strategy for goods and valu-
ables is critical. Delays and losses can incur costs that will never be
recovered. During the 1996 Summer Olympic Games, for example,
merchandise was stolen directly from the unloading docks, causing
great loss for a number of licensees.
The preparation, packaging, shipping, receiving, approval, and
inventorying of cash and valuables is too often a last-minute consid-
eration by loss prevention personnel when planning sport events.

Figure 6-11

Guardians: Selecting and Supervising Loss Prevention Personnel


1. Use background checks before hiring employees or acquire personnel
through firms who use this method to screen their employees
2. Spot-checks ensure the integrity of your loss prevention staff. Spot-checkers
are trained individuals whose sole responsibility is to roam—dressed like
typical spectators—among ticket sellers, admissions personnel, and conces-
sionary staff to prevent profit skimming from your event through illegal
activity. Notify your personnel in writing in advance of the potential pres-
ence of spot-checkers at the sport event.
3. Undercover spectators are trained individuals who may display fake creden-
tials in an effort to proceed through admission personnel without care scruti-
ny. Remember, lost ticket revenue is a tremendous source of lost income for
your event. Therefore, the admission process must be checked periodically to
guarantee that security has not been breached.
4. Undercover customers may be used to attempt to purchase alcohol products
without displaying proper ID or by using an obviously fake ID.
5. Make certain your training program for all personnel includes how to notify
the proper authorities when an unusual occurrence is taking place. An
authority may be a direct supervisor, a law enforcement agent, a private
security official, or anyone who has the responsibility of investigating and
preventing a potential loss.
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CHAPTER 6 RISK MANAGEMENT: PROTECTING YOUR INVESTMENT 125

Private companies realize the importance of this aspect of a sport


event and have begun to specialize in this kind of logistics. FMI, for
example, has orchestrated the delivery, warehousing, distribution,
and protection of licensed merchandise for Super Bowls, World Cup
Soccer, the 1996 Olympic Games in Atlanta, and the U.S. Open.
Not every sport event requires the services of a private firm or an
armored truck to transport cash, but every event does require a con-
fidential plan to ensure the safe accounting of the event’s cash and
other valuables. Your plan should be developed with the assistance of
local law enforcement personnel, your own security director, and line
personnel who will participate in the activity. As a further security
precaution, the number of participants who craft this plan should be
limited only to those who will be directly responsible for its execu-
tion. (See Figure 6-12.)

WRAP-UP
The tear-down phase of an event is often not given much attention
but is actually as important as the preparation phase from the stand-
point of financial and legal consequences. First, from the moment
the closing ceremonies end and the crowd disperses, the organizing
committee is in possession of a wide variety and a large quantity of
equipment from the most technical to the most mundane that must
be disposed of. Much of the technical equipment—including com-
puters, pagers, telephones, fax machines, copiers, sophisticated tim-
ing devices, cameras, televisions, video recorders, and more—as
well as office equipment, must be returned to its proper owner or
can be sold or auctioned off after the event to staff, other sports
organizations, schools, businesses, surplus stores, or to the public.
Whatever remains unsold can be donated to worthy charities to fur-
ther promote the goodwill of the event in the host community. Each
item must be sold “as is” without recourse to the selling entity. The
on-site legal council or senior manager must also continue to moni-
tor and attend as necessary to the disassembly of any alterations
carried out at the venue by the organizing entity so that it can be
transferred back to the care and control of the owners in satisfacto-
ry condition.
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126 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 6-12

Safe Transport
1. Establish how the cash or valuables will be transported and by whom.
2. Create three routes to transport the protected materials to the final
destination. Alter the route for each delivery so that patterns are not
established which might be followed.
3. Vary the time the transport is made to further avoid creating a regular
pattern that can be monitored by those with bad intentions.
4. Determine whether a uniformed armed guard will be required. Then secure
this person through either a private security firm or off-duty police personnel.
5. Plan for backup of personnel if the armed guard does not appear at the
appropriate time to transport your materials or if you need to make an early
shipment because of a large accumulation of cash.
6. Do not let large amounts of cash accumulate at individual box office loca-
tions. Establish a signal for notifying your counting room when pickups
must be made to prevent the theft of large amounts of cash.
7. When receiving concession merchandise, make sure a bill of lading
accompanies the goods and that you inspect and accept the inventory prior
to off-loading the delivery vehicle at your facility. Determine in advance who
has the authority to sign for acceptance of this merchandise.
8. Make prior arrangements for secured storage and inventory of merchandise.
9. When transporting goods to individual booths at the sport event, determine
who will pull items from inventory and load delivery vehicles, who will
accept these goods for transport, and who will sign for acceptance at the
final destination. Receipts should match in order to prevent loss.

SAFETY FIRST
Most successful sport event professionals admit that safety is a para-
mount concern. Steve Schanwald, vice president of Marketing and
Broadcasting for the Chicago Bulls, says:
Some of our players have always received escorts to and from
their cars and the locker room. We also have security people
positioned intermittently throughout the court area. There is
nothing more important to us than the safety of our players
and fans. It doesn’t make sense to bury your head in the sand
and not take precautions.
The night before Nancy Kerrigan was attacked at the ice rink, her
agent Jerry Solomon feared for her safety because the only trans-
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CHAPTER 6 RISK MANAGEMENT: PROTECTING YOUR INVESTMENT 127

portation provided by the organizing committee to a midnight prac-


tice in the middle of Detroit was a hotel shuttle van with no security.
Safety generally involves three areas: fire, medical, and crowd
control. Official procedures and protocols are most likely to be
encountered in those three. High school coach Tom Hilton states,
“Crowd control is essential. We always hire a uniformed off-duty
police officer and make certain the police car is highly visible in the
parking lot. This acts as a deterrent.”
Security must be tight at all levels or it creates a domino effect. If
tickets are not checked for appropriate seating, a rush of people could
enter a section close to the field and players, overburdening the secu-
rity personnel in that area. It is also important to understand that
safety is a global issue to which every department concerned with
planning and operating the sport event should be committed. (See
Figure 6-13.)

Figure 6-13

Safety as a Global Concern


1. At the first planning meeting, include the word safety as a benchmark for
producing a successful sport event. Without overall attention to safety, no
event can possibly succeed.
2. Remind your event team that everyone is a safety consultant and that you
want the input of all personnel in devising a successful safety plan.
3. Establish a safety committee to formulate final plans and set a time frame for
its development.
4. Locate a first aid station on your sport event site. In the case of larger events,
locate as many stations as medical and law enforcement officials recommend.
5. Determine through consultation with medical personnel, or from reviewing
other sport events of similar size, attendance, and scope, the number of med-
ical personnel that your event requires. To ensure complete coverage,
remember to staff these positions from the time personnel arrive for the
event to the time the venue is shut down.
6. Utilize the services of the fire marshal to inspect the venue, to confirm the
capacity allowed for the event, and to help you determine proper signs for
crowd control.
7. When using special effects such as pyrotechnics, check with the fire depart-
ment about requirements for special permits and/or personnel.
8. Check with the fire department to determine requirements for concessions,
decorations, and special areas that may require separate inspection.
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128 THE ULTIMATE GUIDE TO SPORTS MARKETING

Risk management preparation is crucial to any event and relies heav-


ily on the ability of event managers to communicate the venue’s
emergency medical system (EMS) to staff, spectators, and partici-
pants. The following scenario illustrates the elements involved in an
EMS and how—through oral, visual, and physical means—the emer-
gency system is communicated and implemented.

Scenario: Emergency Medical System


The Super Bowl is in progress and a middle-aged man clutch-
es his heart and falls over. His wife remembers reading a
notice in the program (visual) and hearing an announcement
over the loudspeaker (verbal) giving directions on what to do
in an emergency. The wife immediately asked a neighbor to
call an usher, security guard, or the medical team. An usher
was easily identified by an orange vest (visual). He immedi-
ately notified the central communication center (CCC) by
portable radio and gave an assessment of the situation before
beginning CPR. The CCC then contacted the EMT on location
and the doctor and nurse on duty to prepare for advanced
medical care and transportation. The CCC also alerted other
ushers and security to maintain crowd control. After the
usher’s initial contact to the CCC, all communication was car-
ried out by the CCC to keep radio lines clear. After the victim
was safely cared for and taken away, all individuals complet-
ed written reports. Supervisors read this documentation to
evaluate the effectiveness of the system, after which the
reports were stored in case of litigation.
Note: Prior to this event, the facility manager conducted
EMS in-service training for all employees. Each employee was
also certified in CPR and given a copy of the policy handbook.

ANTICIPATING PROBLEMS
For large-scale events, plans should be coordinated between the
organizing committee and the local law enforcement. For the 1994
World Cup Soccer events held in Washington, D.C., 214 individually
numbered patrol post locations were designated in and around RFK
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CHAPTER 6 RISK MANAGEMENT: PROTECTING YOUR INVESTMENT 129

Stadium, and individual officers were assigned to each post from


three and one-half hours prior to every match until approximately
two hours after the end of the match or whenever the crowd dis-
persed, whichever was sooner. In addition, each post was associated
with a designated responsibility such as access control, vendor patrol,
crime patrol, and missing persons. The organizing committee had a
list of all officers and their reported posts and duties.
Contingency plans for an abnormal increase in arrests, processing
of detainees, and possible defectors should also be arranged. This
includes formulating an emergency court plan mandating emergency
weekend court assignments capable of being activated with a single
telephone call from a representative of the judicial task force that
issued the plan. This task force should be a collaborative effort of rep-
resentatives from the law enforcement and justice communities, as
well as the local organizing committee.
As part of the “Marks” protection strategy, a blanket court order
should also be secured before the event is underway, allowing
enforcement personnel to seize counterfeit merchandise, to escort
unlicensed vendors and concessionaires off the premises, and to issue
“cease and desist” letters or notices in the event of ambush marketing
or other unfair competition situations.
Furthermore, local organizing committees should be very familiar
with constitutional rights and local ordinances such as free speech,
ticket scalping, and minority business contracting policies. Although
the First Amendment generally limits the government’s ability to reg-
ulate speech on public property (street, sidewalks, public parks, and
many public sports arenas), the courts have interpreted the First
Amendment to permit the government to place some restrictions
regarding time, place, and manner of speech in public forums.
Therefore, for the 1984 Olympics in Los Angeles and for the nine
World Cup venues in the United States in 1994, the organizers desig-
nated two special areas in and around the venues for the exercise of
free speech.
The public-address script should be reviewed as well to ensure
that it is factually accurate, contains adequate forewarning of the con-
ditions of entry (for example, when video cameras, sticks or poles,
noisemakers, coolers, glass containers, or other items are prohibited
from being brought into the premises), and directs spectators to exits
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130 THE ULTIMATE GUIDE TO SPORTS MARKETING

or other emergency personnel. Be sure the script is free from any dis-
criminatory language.
An amateur video made by the local organizing committee can
successfully memorialize not only the general festivity and atmos-
phere of the event, but weather conditions, decorative elements, com-
mercial activity, seating vantage points, signage, and other circum-
stances which could ultimately become relevant in a legal dispute.
Accurate and consistent incident-reporting procedures can serve
to protect the organizers from unnecessary liability and are a useful
means of disseminating information to headquarters and manage-
ment staff, so as to ensure consistent operations and response to
emergencies.

INCIDENT REPORTING
When and how to report an incident are two important pieces of
information to share with all event volunteers and employees. Figure
6-14 provides examples of “incidents” requiring reporting and inves-
tigation. Language used in reports can often have repercussions that
a person not experienced or trained in the insurance or legal fields
may fail to recognize. Incidents should be relayed without concluso-
ry language. Nothing in the incident report or notice letter to the
insurance company should suggest fault, causation, negligent or
reckless conduct, or other legal conclusions. For example, terms such
as fault, negligent, careless, and cause should be avoided. The facts
should be related without speculation from the writer as to what par-
ticular act or oversight led to what consequences.
World Cup USA 1994, Inc., at the suggestion of one of their on-site
legal counselors, printed their incident report forms on quarter sheets
of ordinary 81⁄2- by 11-inch paper. These pages were then glued in
pads of 50, which fit comfortably in the uniform pockets of all man-
agement staff. In this way, every person authorized to collect infor-
mation on reportable incidents had reporting forms on hand in case
an incident occurred in his or her presence.
The incident report included spaces for the following information:
date; venue; severity (critical, significant, or minor); incident type
(automobile, concessions/food, concessions/novelty, facilities, fan
incident, medical/injury, merchandise infringement, property dam-
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CHAPTER 6 RISK MANAGEMENT: PROTECTING YOUR INVESTMENT 131

Figure 6-14

Incidents Requiring Reporting and Investigation


1. Staff or volunteer suffers physical injury or illness related to event-related
duties
2. Personal injury or property damage to third party caused by event-related
activity or personnel
3. Physical damage to, loss of, or theft of event organizers’ property, or proper-
ty leased, borrowed, rented, or contracted to organizers
4. Auto property damage and/or physical injury caused in an accident involv-
ing an event-related vehicle
5. Threats to security, spectator violence, personnel problems, facility or equip-
ment malfunction, ticket scalping, spectators’ ticketing complaints, market-
ing or merchandise infringement, unauthorized concessionaires, trespassing,
or other difficulties while event organizers have possession of and responsi-
bility for the licensed premises
6. Breach of contract by event organizers or other parties
7. Complaints concerning organizers or other parties
8. Broadcasting of media problems

age, property theft, security/accreditation, ticketing, or other); time of


incident; location of incident; description; and resolution/action. The
report asked, “What was the staff member doing at the time of
injury?” If there was a physical injury, the report asked for the injured
person’s description of the injury and attitude of the victim and for
comments in addition to the aid given. If a vehicle was involved, the
report asked for a description of the damages and an estimate of the
value. If the incident was insurable, the report asked the venue inci-
dent coordinator to submit a claim to the insurance company.

SECURING ADEQUATE INSURANCE


The best laid plans often are circumvented because of circumstances
beyond your immediate control. This is why maintaining adequate
levels of insurance is critical. This issue is of such importance that
members of the International Special Events Society (ISES) are
required to have adequate levels of comprehensive liability insurance
in order to maintain their membership.
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132 THE ULTIMATE GUIDE TO SPORTS MARKETING

Indeed, most venues require that the promoter, sponsor, or organ-


izer of the event maintain a minimum level of insurance. Insurance
coverage that is typically required is shown in Figure 6-15. The pre-
miums for these types of insurance are based on the level of risk.
Obviously, a tennis event is at greater risk of cancellation because of
player injury or weather than a rugby match is. With a reduction in
gate receipts, the burden of proof is on the policyholder to quantify
the loss and justify the anticipated attendance. For this type of insur-
ance, it is best to agree upon values, based on average historical
records, prior to the start of the events.

Cancellation Policies
Cancellation insurance requires that the criteria for canceling an event
be specified in advance. A hot-air balloon race or air show may be
canceled because of low clouds and high winds, while other events
may be canceled if the humidity level is too dangerous or if players
fail to arrive because of travel difficulties. Cancellation insurance also
should cover loss of merchandise sales, with the merchandise ven-
dor’s costs and expenses typically guaranteed for loss of profit.

Prize Indemnity
The conditions for prize indemnity must also be stipulated in advance.
These include the type of technology that is allowed in the contest or
the prior experience of the contestant. A successful contestant of the
half-court million-dollar shot offered by the Chicago Bulls was ulti-
mately disqualified by the insurance company, as he had played a
semester of college basketball. Although the insurance company did
not pay the prize money, the contestant ended up receiving the money
from local sponsors and the Bulls organization. Premiums are based on
the number of attempts available to win the prize and the probability
of success. Contests for large prizes (e.g., hole-in-one, half-court shot)
are frequently required to be videotaped for proof. A lawsuit over pos-
sible fraud occurred between a race car driver and an insurance carri-
er. The race car driver won three races and alleges that, according to the
contest rules, the driver is due a cash bonus. However, the insurance
company inspected the vehicle and discovered that it was an enhanced
version of the technology initially approved by the insurance compa-
ny; therefore, the underwriter alleges that the coverage is null and void.
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CHAPTER 6 RISK MANAGEMENT: PROTECTING YOUR INVESTMENT 133

Figure 6-15

Types of Insurance Coverage


1. Comprehensive General Liability
A package policy that includes fire, theft, and injury also typically includes
several exclusions such as pyrotechnics, aerial or participant activities, and
other high-risk activities.
2. Cancellation or Contingency
Provides coverage for the cancellation of the event. A comprehensive
cancellation or contingency policy will provide adequate coverage for
nonappearance of celebrity performers and rain, lightning, or other acts of
God.
3. Prize Indemnity
Indemnifies the sponsors against loss of income due to prize fraud or contest
awards. Often used for hole-in-one golf tournaments.
4. Workmen’s Compensation
Required by most states to provide reimbursement of medical expenses for
workers injured on the job.
5. Automobile Liability
Provides compensation to those who are injured by automobiles used for the
event covered under the insurance policy.
6. Property Insurance
Insures sets, props, and other material items.
7. Participant Accident Coverage
Provides coverage for the accidental death or dismemberment of an event
participant.
8. Inland Marine Insurance
Provides coverage for goods in transit or goods that do not have a fixed
location.
9. Board of Directors Liability
Protects volunteer board members from personal liability.

Selecting the Appropriate Insurance


and Insurance Company
When purchasing insurance, the best advice is to select an agent who
is knowledgeable about your business and can thus suggest the most
appropriate coverage. Most event management firms purchase an
annual policy covering all business activities. In the case of high-risk
events such as skiing, however, it is advisable to purchase a separate
policy in order to keep premiums to a minimum. For one-time events,
however, the first point of contact should be the associated sports
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134 THE ULTIMATE GUIDE TO SPORTS MARKETING

governing body. As part of the sanctioning fee, most sport organiza-


tions provide comprehensive general liability coverage.
LeConte Moore, senior vice president of Marsh & McLennan, one
of the world’s largest sport and entertainment insurance brokerage
firms, says that it is essential for the sport event professional to seek
expert, experienced advice when determining the type, amount, and
length of coverage required to manage the risk of financial loss.
Moore, a 20-year sport and entertainment industry veteran, states
that “the broker’s technical expertise and experience, examples and
references of past events, and access to a large group of specialized
underwriters should provide the purchaser with enough information
to make an informed and confident decision.”
Moore describes the professional insurance broker’s function as
“providing the transactional capabilities to link clients with appro-
priate insurance companies that can adequately underwrite the risks
presented. Typically, the broker receives a fee or commission from
the insurance company based upon a percentage of the premium
paid.” You can also go direct to insurance companies without using
a broker.
Fewer than 10 insurance firms, by Moore’s estimation, have the
knowledge and experience to accept the coverage for a major sport
event—a great contrast with other forms of insurance where the pur-
chaser may have dozens of options. Therefore, the relationship
between the broker, client, and insurance company in sport event
management is critical. Paramount in this relationship is the level of
understanding between the client and the broker. The broker must lis-
ten carefully to the needs of the client to best evaluate the risks
involved in the sport event and then properly communicate these
needs to the insurance company to provide appropriate coverage.
K&K and Bollinger Fowler are two insurance companies that spe-
cialize in sports-related insurance. Other companies specialize even
further. For instance, SCA Promotions specializes in prize indemnifi-
cation, including kick-off return promotions, halftime promotions, or
rebate promotions based on a particular sport or season.
By matching your needs with a company that specializes in
sports-related or promotion-related insurance, you are more likely to
find a specialist that understands your specific risks and can better
assist you in buying the appropriate type and amount of insurance
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CHAPTER 6 RISK MANAGEMENT: PROTECTING YOUR INVESTMENT 135

for your team or event. These insurance specialists can also guide you
on how best to minimize risk and reduce claims and provide a
breadth of information through their brochures, application forms,
underwriting guidelines, risk management information, sample
releases, and other business materials.
A good reputation is another important criterion. According to
Jim Pearson, a lawyer with Pearson, Milligan & Horowitz in Denver
and an authority on adventure sport insurance, it is important to
“talk with other entities that have similar operations to yours, as they
may have already found the ideal insurance program for you or may
know which insurance programs to avoid.”
Todd Overton, an account manager with SCA Promotions, advis-
es people to look for companies that have been in business for at least
three years and to get a list of contact names and phone numbers for
claims the company has paid out. “Anybody can issue a contract, but
you want to make sure that they can pay out,” said Overton.
State insurance commissions, which regulate insurance company
activities, can also provide valuable information about the legal sta-
tus of a company in their state, as well as the number and type of
complaints or operational problems reported in the past. That infor-
mation also helps you evaluate how a particular insurance company
handles its claims and treats its customers. You should also research
the insurance company’s industry rating, which is available from
Standard & Poor’s, Moody, and A.M. Best.
Yet another concern in selecting your provider should be the size
of the agency that is selling the policy. “Insurance agents with pur-
chasing power are often better able to negotiate special requests or
waivers from insurance companies than an agent with only a few
clients,” said Elaine Curl, president of Sports Transportation
Management and The Convention Store in Edgewater, Maryland.
According to Curl, a reputable insurance broker with experience
in writing policies relating to sports should be able to discuss impor-
tant coverage issues such as deductible limits, whether lawyers’ fees
and litigation costs will reduce the amount of coverage, what hap-
pens if more than one person is injured or if you have more than one
loss in one year, policy limits, and applicable state and federal laws.
Curl said her insurance agent has even been helpful in reviewing and
responding to requests for proposals.
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136 THE ULTIMATE GUIDE TO SPORTS MARKETING

Finally, as with any business decision, price is important. But be


careful when quoted premiums are substantially lower than others
you have received. Small agencies trying to break into the business
frequently offer lower rates but are unable to satisfy commitments
when claims come in, and they often end up going out of business.
When selecting an insurance provider, take the time to research
and interview several insurance providers. Make sure that you feel
confident and comfortable with the provider you choose, for when
things go wrong, and they invariably do, the insurance company
you’ve selected can either make or break you. Figure 6-16 provides a
list of questions to ask before purchasing insurance.

Figure 6-16

Twelve Questions to Ask Before Buying Insurance


(Adapted from a list provided by Jim Pearson)
1. How long has the company been in this type of business, or how long has
an agent handled this type of client?
2. What is the procedure for handling claims? Who does it, and how long
does it typically take? What is the claims reporting period? What is the
company’s philosophy about settling claims? Who selects the attorneys
handling the defense of a lawsuit, you or the insurance company?
3. Exactly what is covered under the type of policy you are considering for
purchase, and conversely, what is not covered?
4. Who is covered under your policy or policies—for example, spectators,
participants, employees, volunteers?
5. What kind of risk management program does the company or agent offer?
6. How are premiums calculated (for example, are they based on the number
of participants or upon gross receipts), and can they be paid in installments?
7. Is the agent’s commission structure the same for each company the agent
represents?
8. Is the policy a “claims made” or an “occurrence” type?
9. What are the policy limits, and how are the limits determined and applied
to different claims?
10. How many clients of your type has the agency or company handled, and
what are the names of some references?
11. Does the agency or company offer any discounts or incentives for
certifications, enhanced safety features, good safety record, and so on?
12. Can the agent identify risks and exposures associated with your event?
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CHAPTER 6 RISK MANAGEMENT: PROTECTING YOUR INVESTMENT 137

THE FINAL SCORE


For one-time events, however, the first point of contact should be the
associated sports governing body. As part of the sanctioning fee, most
sport organizations provide comprehensive general liability coverage.
The most important final tally is not the score recorded on the ath-
letic field. The tally that will be recorded in a great number of record
books will be that of your professional management of the risk, loss,
and safety. A good record here is one truly to be proud of and is the
most important championship of all. In the words of Gil Fried, always
remember the “ects” of risk management:
Reflect on why you engage in risk management.
Deflect by passing liability onto someone else through insur-
ance, releases and waivers, hold-harmless and indemnity
clauses in contracts, and by being named as an additional
insured on other insurance policies.
Detect all your risks.
Inspect to make sure risks are minimized.
Correct any problems that are identified.
Reinspect to make sure the work ordered was complete.
Reflect on what did and did not work to improve future
events.
One area where risk is increased and opportunity expanded concerns
the celebrity in your sport event. As you will see in Chapter 7, the
right celebrity can be an excellent addition to your sport event.

GAME HIGHLIGHTS
• Risk management, loss prevention, and safety are effective man-
agement tools to use in producing profitable and successful
sport events.
• Use a focus group composed of event staff to help you identify
a wide range of potential threats and plan for their efficient
management.
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138 THE ULTIMATE GUIDE TO SPORTS MARKETING

• Provide effective oral, visual, and physical communications so


that employees, spectators, and participants will know what to
do in an emergency. Use one central control center for EMS so
miscommunication will not occur and radio lines are left open.
Write a report after each incident for litigation and evaluation
purposes.
• Select an insurance broker knowledgeable in the sport event
field who can advise you wisely about the amount and type of
coverage you need.
• Involve external groups such as athletes and spectators in the
safety review process to ensure universal acceptance and usage.
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C H
7
A P T E R

EFFECTIVELY
RECRUITING
AND LEVERAGING
A SPORT CELEBRITY
On the day of the race, a lot of people want you to
sign something just before you get in the car so that
they can say they got your last autograph.
A. J. Foyt, race car driver

P
ing?
LANNING A CELEBRITY SKI WEEKEND, golf tournament, an
awards banquet, or your company’s annual sales meet-

If so, the thought of inviting one or more celebrity ath-


letes is sure to be on your mind. The reasons for the high
interest and demand for sport celebrities include their abil-
ity to (1) draw people to an event and sell tickets; (2) gain
media exposure for an event or organization; (3) motivate
and entertain corporate employees, organizational mem-
bers, and guests; and (4) sell more product. Despite these

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140 THE ULTIMATE GUIDE TO SPORTS MARKETING

benefits, event planners need to consider a number of items before


soliciting a sport celebrity.
First, you must determine if a celebrity athlete is right for your
event. This is often based on the event’s purpose and audience pro-
file. If the purpose of your event is to raise money, you need to decide
if a sport celebrity will positively enhance your goals and objectives.
For example, will more participants register and more pledges be col-
lected for a multiple sclerosis walkathon if a sport celebrity starts the
race? As far as the audience profile, would a sport celebrity be the
best speaker to invite for an international computer science confer-
ence? If in fact a sport celebrity is deemed appropriate for your event,
the next question to ask is “What type of athlete, referee, coach, or
mascot should I invite?”
Here again the demographics of an event play an important role.
Jim Palmer, a retired baseball player, may be great for a corporate sen-
ior sales meeting but not so good for a youth event. Obviously, an
active or just recently retired player will have more appeal for a
younger audience. It is also important that the athlete have the abili-
ty to relate to the audience. Can the sport celebrity apply lessons
learned on the field to the boardroom or to daily issues applicable to
both men and women, sport fans and nonsport fans in the audience?
Marketing a sport event, sport tour, or any other sport-related
special event or product through the use of a celebrity athlete is not
always a slam-dunk. Advance research and planning needs to be
done to maximize an athlete’s appearance power.

FINDING THE RIGHT MATCH


Fortunately, there is assistance in identifying an appropriate celebrity
for your event. Marketing Evaluations/TVQ, a research company in
Manhasset, New York, ranks 375 active and retired sport personalities
in terms of their familiarity and appeal to the general public as well
as to specific markets (e.g., 40- to 55-year-old males on the West
Coast). The cost for this service ranges from $950 for a profile on one
athlete to $13,500 for profiles on all athletes studied.
If this research is beyond your budget, informally survey your
audience by requesting information on the sports in which they per-
sonally participate or regularly follow. You can also research the televi-
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CHAPTER 7 EFFECTIVELY RECRUITING AND LEVERAGING A SPORT CELEBRITY 141

sion ratings of different sports. Ratings offer a breakdown of viewer-


ship by demographics. Another resource is participation statistics cal-
culated by the Sporting Goods Manufactures Association (SGMA) and
the National Sporting Goods Association (NSGA), some of which are
provided in the Sports Market Place Directory. Lastly, speakers are often
identified solely on the intuition of the event organizer’s personal
knowledge of the athletes and the audience. Remember, it is also pos-
sible to use a nonathlete celebrity to enhance a sport event. Jack
Nicholson attending Los Angeles Lakers’ Games or Garth Brooks play-
ing ball at spring training are two good examples.
Regardless of the identification process, the next step in the selec-
tion process should be a reference check. An investigation should be
made as to whether the athlete is reliable, capable of making a good
presentation (without using “locker room” language), and can relate
to your audience. Speaker bureaus such as Burns Sports Celebrity
Service, Inc., the nation’s oldest source for sports celebrities since 1970,
and the Washington Speakers Bureau can assist with this research, as
well as the logistics of booking the sport celebrity appearance. Burns
Sports Celebrity Service, Inc. maintains a 3,500-name database in their
Chicago office and with a keystroke can call up the name, location,
agent, and general fee for any sports celebrity, from megastar Michael
Jordan to a lesser-known Olympic wrestling champion. After 25 years,
David Burns, the founder of this service, knows which athletes, coach-
es, referees, and team mascots are likely to make a client happy and
which ones will leave them gasping for air.
Ideally, you would personally meet and witness the athlete in a set-
ting similar to your event. If this opportunity is not available, be sure to
request a videotape of the athlete presenting. No matter what, always
request references. When checking references, be sure to identify the
nature of the event in which the athlete was involved, whether or not the
athlete interacted with the audience, how well he or she related to the
audience, the athlete’s reliability, any special requests that the athlete
may have made, and the appearance fee—if the reference will provide it.

CONTACTING AND PERSUADING THE SPORT CELEBRITY


Once you have narrowed your selection, you need to contact the appro-
priate person, whether it is a family member, an athlete’s personal
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142 THE ULTIMATE GUIDE TO SPORTS MARKETING

friend, the athlete’s agent or team, a speakers bureau, or the athlete


directly. This initial call allows you to check on the athlete’s interest,
availability, and fees, and to identify any other criteria that may be
important to the sport celebrity. Be sure to check the athlete’s practice
and game schedules before calling to make sure there are no conflicts
with the date of your event.
The next step is to write a brief letter to the athlete stating your
request and mail it in care of the athlete’s contact person. Within the
letter, provide the details of the event, including the purpose, benefi-
ciary, date, time, location, schedule of activities (e.g., cocktail recep-
tion, dinner, speech, autograph signing), and a response date. Also list
in descending order of importance the benefits the athlete will enjoy
from participating in the event, such as an appearance fee or honorar-
ium, media exposure, a donation to the athlete’s charity, an opportu-
nity to meet corporate executives that may be interested in signing
endorsement deals, or an opportunity to sell books, CDs, or other mer-
chandise related to the athlete. Always include a suggested response
date to remind the athlete or his or her representative that your pub-
licity is being developed and requires confirmation to proceed.
Unless you are involving multiple celebrities in your event, con-
tact only one athlete at a time. Do not send out simultaneous letters
to a dozen athletes hoping that one will respond. The world of
celebrity athletes is a small one; publicists and athletes get extremely
upset when they learn that you have sent multiple invitations.
Most athletes admit that their chief concern is compensation but
that they realize public appearances are part of building their resume.
They also want to know about the credibility of the organization put-
ting on the event and the demographics of the people attending.
Some athletes will only participate in events targeted to youth, while
others focus entirely on the corporate market.
Getting the right person to pitch the celebrity is essential. Bob
Geoghan, founder and president of Sports America, Inc. in Rockville,
Maryland, remembers when a famous sportscaster turned down his
invitation to speak at a NFL “Player of the Year Dinner” only to accept
a few weeks later after the sportscaster’s boss presented the same
invitation. Other useful inside sources are the family members, train-
ers, coach, or agent of an athlete. A request can also be made directly
through the public relations or community relations office of the ath-
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CHAPTER 7 EFFECTIVELY RECRUITING AND LEVERAGING A SPORT CELEBRITY 143

lete’s team, as most players are required to make a certain number of


community appearances per year. Obviously, the personal approach
is usually more successful.
Another suggestion on how to attract a sport celebrity to your
event is to offer the athlete an award. Unfortunately, this can often
turn into an expensive proposition when the athlete starts requesting
that their agent, family members, and friends also be invited to par-
take in the celebration. Now, instead of paying first-class air, accom-
modations, and meals for one or two people, you are paying for three
or more.
Once a sport celebrity expresses interest, a contract or letter of
agreement is drafted and signed by all parties. The agreement should
specify the length of appearance, number of breaks (if appropriate),
cancellation or no-show penalties, and type and class of transporta-
tion, accommodations, food, and beverages. The type of attire should
also be discussed for two reasons. First, you want the athlete to dress
for the occasion. Second, the athlete may wear sponsored clothing
that conflicts with one or more of your event sponsors. At the same
time, travel plans and any other special requests should be arranged.
In addition, specific materials about the organization and audience
should be mailed to the athlete (or appropriate contact) so that the
celebrity’s speech, which is usually canned, can be tailored to the
group. The benefit of working through a speaker’s bureau is that all
these details are taken care of, as well as most of the worrying about
whether the athlete will show up.

WHAT DOES IT COST?


The cost of booking sport celebrities for charitable events is consider-
ably less than for corporate events. Depending on the event, cause,
and the person making the request, athletes will often attend charita-
ble events for free. This is where research plays an important role.
Find out whether any athletes are currently serving on the national
board of the charity or have been linked historically to the cause. It is
always easier to attract a celebrity who has a personal interest in the
cause, as is the case with quarterback Boomer Esiason and cystic
fibrosis, a disease that has afflicted his son. Also check with your
major corporate sponsors. Many companies retain sport celebrities on
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144 THE ULTIMATE GUIDE TO SPORTS MARKETING

their payroll. You could cut the costs of appearance fees if these
celebrities are asked, as part of their corporate contract, to make the
appearance.
For charitable events that occur on a regular basis and for which
the same athletes are frequently asked to participate, such as the
Washington Redskins’ weekly luncheon benefiting Children’s
Charities, it is advisable to offer a small honorarium ($150 to $300).
This token of appreciation not only makes the athletes feel more spe-
cial but makes them feel more accountable to the event. Typically, the
more money a sport celebrity is paid, the less likely they will cancel;
however, emergencies do happen!
For those events with a budget to pay for a sport celebrity, the best
recommendation is to identify a local sport celebrity who will not
require first-class airfare or accommodations. Local athletes are often
more effective as well because of their recognition level. According to
Bernie Swain, partner of the Washington Speakers Bureau, “The fee
for sport celebrities ranges between $5,000 and $50,000.” For instance,
Tony Dorsett commands a fee of $7,500, Bob Costas gets $35,000, and
John Madden asks $50,000. (Note: Madden is extremely selective with
his engagements and may speak a total of three times per year.) The
cost of a sport celebrity may also depend on whether the athlete is
asked to deliver a keynote speech, to attend autograph and/or pho-
tograph sessions, or to simply attend the event to meet and greet
guests. If your event charges admission, some athletes may negotiate
a deal for a percent of the gate. This is especially helpful for event
organizers short on cash. Other athletes may request that a donation
be made to his or her charitable foundation or another nonprofit
organization.
In addition to their appearance fees and associated travel expens-
es, some of the more notable sport celebrities include contract clauses
requiring local limousine transportation, additional security, special
dietary requests, and even the stipulation that a PGA golf course be
within 40 miles of the event location.

MAXIMIZING THE CELEBRITY’S APPEARANCE


One of the best ways to capitalize on an athlete’s appearance is for the
athlete to have something on which to sign autographs, such as
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CHAPTER 7 EFFECTIVELY RECRUITING AND LEVERAGING A SPORT CELEBRITY 145

posters, playing cards, or event programs. Such items can often be


provided complimentary by one of the athlete’s sponsors (e.g., Nike
or Wilson) if requested in advance.
If an athlete is being used to help promote an event, be sure to
request a biography and picture of the athlete to include in a press
release, as well as posters or other marketing materials that an agent,
team, and/or a sponsor can provide to distribute in the local area to
increase public awareness of the athlete’s appearance. You may also
request that the athlete travel to your city prior to the event in order
to schedule media interviews and/or a press conference. Whenever
possible, recruit the celebrity athlete to be your promotional partner.
If the athlete is expected to make a presentation and he or she is
not experienced at public speaking, it is advised to provide a draft
speech or talking points and to designate time to rehearse the pres-
entation. If the athlete frequently speaks, be sure to work with him or
her to personalize the athlete’s standard presentation so that it will
better relate to your specific audience. If applicable, a demonstration
by the celebrity athlete may also enhance a presentation.
Finally, small details can often make the greatest difference.
Arrange for someone to pick up the athlete at a scheduled time so that
you are certain the athlete will arrive to the event on time or make his
or her flight on time. Make arrangements for the appropriate amount
of security and a photographer to be at the event, as well as for deliv-
ery of the memorabilia to be signed and waterproof marking pens. In
establishing the schedule, prepare a window of time for each activity
that is longer than actually needed so that if the sport celebrity paus-
es to greet fans or is late, you will still end on time. By adding min-
utes to the published schedule, you can compensate for delays
beyond your control. It is also wise to assign a specific staff member
to host and handle any unique requests that may arise during the
appearance. A backup plan should also be ready just in case the ath-
lete becomes ill or is not able to appear for another reason. One such
plan is to build a relationship with an agent representing various ath-
letes so if your first choice is a no-show another athlete is on standby.
The checklist in Figure 7-1 provides step-by-step instructions for
organizing an effective sport celebrity appearance.
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146 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 7-1

Steps to Producing a Successful Sport Celebrity Appearance


Before the Appearance
• Review all correspondence and contracts to be certain you are in full
compliance.
• Set time lines for scheduling air travel, ground transportation, hotel
reservations, and other amenities.
• Ascertain whether the sport celebrity has any special needs during travel
such as airplane seating preference, food and beverage likes and dislikes,
and entertainment or other amusement activities in which they may wish to
engage, including sport events.
• Confirm in writing all travel arrangements.
• Check with the celebrity or his or her representative about any specific
security arrangements that must be made locally.
• Send a written logistical plan to each venue where the sport celebrity will
appear, describing the setup with the help of graphic visuals.
• Confirm that each venue has received plans, understands requirements, and
can comply fully.
• Send the final itinerary listing all scheduled activities and ask the sport
celebrity to approve, comment, or change with his or her initials. This letter
of agreement is essentially your contract and should begin with “This letter
is to confirm that….”
• Schedule and confirm in writing all travel arrangements.
• Assign a person to be available on a 24-hour basis to handle the sport
celebrity’s last-minute needs upon arrival.
• Notify the hotel that you will be using a pseudonym for the celebrity to
avoid pranks or intrusive calls to the celebrity’s room.
• Ask the hotel to provide special amenities such as a fruit basket, welcoming
gifts, and so forth for the sport celebrity.
• Simulate the travel and walking path of the celebrity to the event venue so
that your event plan contains the actual time it takes for the celebrity to get
to his or her destination. This will avoid miscalculations and delays later.
Day of Arrival
• Call the airline to confirm the flight.
• Call the hotel to confirm room availability and welcoming gifts.
• Call the transportation company to confirm the limousine or shuttle pickup
at the airport or for local engagements at the celebrity’s home.
• Arrive at the airport one hour prior to flight arrival.
• Stage the limousine or shuttle for prompt pickup.
continued on next page
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CHAPTER 7 EFFECTIVELY RECRUITING AND LEVERAGING A SPORT CELEBRITY 147

Figure 7-1 continued

• Greet the sport celebrity and escort to transportation.


• Retrieve luggage and deliver to the hotel.
• Prior to the sport celebrity’s leaving the limousine, retrieve the room key and
escort him or her directly to the suite, or have the limousine driver call ahead
to make sure the sport celebrity’s room key is available upon arrival.
• Hand the sport celebrity an itinerary that describes all previously approved
and scheduled activities. Ask the celebrity to review and query it.
• Reconfirm the time for pickup and/or transfer to the first engagement.
• Notify hotel security that a sport celebrity is in the hotel and ask for
assistance in providing coverage for transfer from room to transportation
or lobby.
During Events
• Arrive one hour prior to the sport celebrity appearance to reconfirm all
logistics.
• Confirm that the arrival area is secure and free of casual bystanders.
• Confirm that all personnel are standing by for arrival. Personnel may
include host, police, security, and other staff.
• Select an escape route if the arrival area fails because of breach of security.
Ideally, this will be a nearby room where the sport celebrity can be secured
until crowd management is handled.
• Escort the sport celebrity to the appearance area.
• Make sure the crowd lineup is proceeding according to plan and that all
personnel are at their posts.
• Keep your eye on the clock and begin checking the departure route for
clearance 15 minutes prior to the end of the appearance.
• Do not announce in advance the departure of the sport celebrity. Make the
movement as quiet and inconspicuous as possible.
Appearance Physical Requirements
• Use a stage with a height of 24 to 48 inches (48 inches deters guests from
sitting on the stage).
• Use rope and stanchion to clearly mark areas where autograph seekers and
guests are to queue up to meet the sport celebrity.
• Use a table (8 feet long, skirted on the front and two sides) for autographs.
• Use pre-autographed photos and have the celebrity add initials at the event.
• Make certain the area is well lighted with sufficient candlepower for
videotaping if required.
• Provide bottled water or other refreshments for the sport celebrity in this
area.
continued on next page
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148 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 7-1 continued

Appearance Personnel Requirements


• Make certain private security and police have established communication
and are working together.
• Place one guard on each end of the stage and beside access ramps or stairs.
• Place one guard near the front and back of the sport celebrity.
• Place a public relations staff member immediately beside the sport celebrity
to serve as buffer for unruly fans or guests.
• Assign one person as a gofer to restock autographed photos, bring
refreshments, or perform other essential tasks.

IDEAS FOR SPORT CELEBRITY APPEARANCES


The possibilities are limitless for your sport celebrity appearance.
Figure 7-2 offers some creative possibilities to illustrate this point.
The growth of the business of booking celebrity athletes continues
to escalate as more and more companies realize that sports figures as
speakers have the ability to motivate employees and entertain clients. In
addition, they have the capacity to raise the recognition level and appeal
of the products they promote. If well researched and properly courted,
a sport celebrity can be an event planner’s most valuable resource.
In the next chapter, you will discover how to integrate a variety of
marketing techniques to maximize the visibility and profitability of
your sport event.

Figure 7-2

It’s Showtime!
• Schedule a bush league star baseball player to provide batting lessons for
your corporate sales team.
• Engage a state championship runner to carry the flag into your celebrations
and have him or her hand the flag to a national running star.
• Turn your shopping mall into a Little League baseball tryout area using a
Nerf baseball to avoid damages, and invite a former major leaguer to sign
autographs.
continued on next page
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CHAPTER 7 EFFECTIVELY RECRUITING AND LEVERAGING A SPORT CELEBRITY 149

Figure 7-2 continued

• Invite a local golf pro to provide putting tips or work with a golf club manu-
facturer to bring in a PGA pro to sign autographs and answer questions.
• Introduce the speaker with video clips from his or her best games.
• Take your guests to a major league hockey game, and as a surprise, arrange
for one of the players to drop by the reception after the game to greet and
meet your guests.
• Hold your banquet on the 50-yard line of Texas Stadium in Irving, Texas
(home of the Dallas Cowboys), and invite one of the assistant coaches to
scrimmage with your team.
• Schedule a clay target-shooting tournament at a resort, and hire a professional
trick shooter to mix with your regulars and keep them on their toes.
• Arrange for an early morning jog for your group and engage a presidential
lookalike complete with five or six secret service types to join you.
• Invite the local team mascot to welcome your audience to the city and have
the mascot lead your guests to the next activity, such as an exhibit hall where
he/she will pose for photos.
• The sky is the limit! While en route to the big sales meeting on board your
747 aircraft, invite an Olympic gold medalist to speak to jet-setting business
leaders about never giving up and going for the gold!

GAME HIGHLIGHTS
• A sport celebrity includes athletes, coaches, team owners, offi-
cials, mascots, and members of the sport media.
• Always determine the purpose of the sport celebrity appearance
before signing a contract.
• Do your homework and find out the sport celebrity’s schedule,
personal or sponsor affiliations, and previous appearances and
their success.
• Use market analysis (e.g., Q ratings) to determine the most suit-
able celebrity for your event and audience.
• Be sure to add time in the event appearance schedule for delays
and other problems that could occur with an uncooperative
celebrity.
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C H
8
A P T E R

EVENT MARKETING
So many sports organizations have built their entire
budgets around television, that if we ever withdrew
the money, the whole structure would collapse.
Roone Arledge, former ABC sports director

W HAT ARE THE TWO TYPES of event marketing and how


can both be accomplished successfully?
Traditionally, event marketing refers to the actual mar-
keting of an event by event organizers. For sport events,
this type of event marketing involves marketing to: (1) ath-
letes to secure their participation in the event, (2) the media
to cover the event, (3) the general public to attend the event
and/or follow the event via print and electronic media, (4)
corporations to sponsor and support the event, (5) govern-
ment officials to provide public support, and (6) private
vendors to provide efficient and reasonable services.
The contemporary use of event marketing, however,
refers to a new strategy companies and communities are
implementing to reach consumers beyond traditional, clut-
tered advertising mediums. With companies competing in
a world characterized by even greater competition, market
saturation, and change, it is no longer possible to effective-
ly communicate with the consumer in traditional ways.

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152 THE ULTIMATE GUIDE TO SPORTS MARKETING

Companies are looking for ways to differentiate their brands through


emotional positioning and to create innovative communication
devices. Through events, companies try to develop an active relation-
ship between the brand and their consumers.
Information on both of these types of event marketing will be cov-
ered within this chapter that will be helpful to event organizers and
event sponsors looking to maximize opportunities.

PART I: TRADITIONAL EVENT MARKETING


Obviously, each of the six target audiences mentioned above requires
a unique marketing approach. For example, event organizers may
need to pitch athletes’ parents, coaches, or agents to secure the ath-
lete’s participation. For the media, press releases, special invitations,
and gifts are standard. Depending on the type of event and size of
budget, direct mail, advertising, and now the Internet are effective
marketing vehicles to reach the general public. Corporations expect
to receive a concise sponsorship proposal clearly outlining the event’s
target market and benefits to the company. Government officials look
for studies detailing the event’s positive economic and social impact
on the community and how the event will benefit their personal agen-
da. Finally, vendors are interested in working for events professional-
ly run, with well-written requests for proposals, and events offering
long-term or new business opportunities. Since marketing to corpo-
rations, government officials, and vendors are covered in Chapters 9,
12, and 3, respectively, the focus of this section will be on promoting
the sport event to participants, spectators, and the media.

Attracting Participants and Spectators


The 2000 Susan G. Komen Breast Cancer Foundation Race for the
Cure in Washington, D.C., set a new record for participation in a 5K
foot race. Over 69,000 runners registered for the event. How did this
event grow from 7,000 in 1990 to this new record? “With lots of hard
work, excellent volunteers, sponsors, and a good cause,” states
Vanessa Collier, director of public relations. Registrations were
received by mail (4,000); online (9,700); at one-stop registration sites
such as Fresh Fields or Hechts stores, where participants could regis-
ter and pick up their T-shirt and goody bag in advance (26,900); team
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CHAPTER 8 EVENT MARKETING 153

packets (20,000); late registration at the 97.1 Soft Rock Health Expo
(6,500); and another 2,800 through other means. A director of teams,
in addition to the director of registration, was hired primarily to visit
companies and encourage them to form a team to participate in the
race. This maneuver turned out to be extremely successful. In addi-
tion, the event recruited a media partner, the local NBC affiliate that
ran a number of public service announcements (PSAs); placed adver-
tisements in newspapers, in magazines, and on radio stations; and
distributed entry forms through various local companies. All total,
the event raised more than $3 million to be designated for breast can-
cer research, education, screening, and treatment. According to Jim
Vandak, race director for the Army 10-Miler, the most common way
to market a road race is through running publications, race brochures,
and the Internet.
For event organizers and marketers, Internet sites such as
ActiveUSA, Acteva, Do It Sports, and SignMeUpSports all provide
event registration technology and marketing opportunities. These
sites will assist you in developing an individualized event Web site
outlining all the necessary information regarding the event, along
with the possibility of registering online. For each online registration,
a 2 to 8 percent transaction fee is charged either directly to the regis-
trant or to the event organizer. When you sign up your event with one
or more of these companies, your event will be listed in their calendar
of events by date, location, and type of sport. ActiveUSA, for exam-
ple, offers more than 75,000 events nationwide in more than 50 sports,
from running and triathlons to skiing and fishing.

Marketing to Athletes
With over 36 million youth participating in sport each year, the
opportunity to capture this market is huge. Considering that coaches
make the majority of decisions regarding tournament selection and
team travel, we will consider this group as primary gatekeepers.
Parents, however, are also an important audience, as they make the
ultimate decision concerning whether or not their child will travel
and if so, how many (if any) family members will accompany the ath-
lete. On average, 3.2 spectators attended for each participant in The
Lone Star Junior Volleyball Classic for girls 10 to 18 years old held in
Austin and Dallas, Texas. It is important to note, however, that boys
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154 THE ULTIMATE GUIDE TO SPORTS MARKETING

events typically do not involve the same travel commitment from


parents and family as girls events.
The Lone Star Junior Volleyball Classic attracts over 520 teams to
Austin and Dallas. When coaches were asked why they chose the
Lone Star over other tournaments, their response was good competi-
tion, unique venues (held in convention centers), and a fun location,
and because the tournament was well organized, attracts many col-
lege coaches, and was shown on tape-delayed television. One of the
marketing strategies of the Virginian Soccer Tournament, which
attracts over 650 teams, is scheduling four games plus finals, where-
as most tournaments offer only three games and finals.
For professional events, Lee Coorigan, tournament director of the
State Farm Senior Golf Tournament, understands that in order to
attract high-quality athletes to his tournament, the airport and hotel
must be close to the course, the purse needs to be high, and family
activities must be planned. As an example, Coorigan throws a private
fireworks party just for the golfers and their families.

Selling Out the Stands


To sell out a sport competition or special event, be it the Olympic
Games or a fund-raiser dinner, ticket sales require both a creative and
scientific approach. To begin, the price of the ticket must be deter-
mined. To do this, the type and purpose of the event, total expenses,
sponsorship revenue, the location, anticipated demand, and local
competition must all be considered. If you are hosting the only golf
pro-am within a 300-mile radius at an exclusive golf course in a rela-
tively affluent community, your entry fee should fall toward the
upper end of the fee spectrum. On the other hand, if you are trying to
gain exposure and increase public interest in your sport, a lower price
may be charged (e.g., WNBA or MLS).
Once the ticket price is determined, target markets must be iden-
tified. Target markets may include individuals residing in a specific
zip code; school, church, or civic groups located within a geographi-
cal area; previous supporters/customers; subscribers to related sport
publications (e.g., Golf Magazine); or members of related sport organ-
izations or clubs.
Specific names and contact information of individuals within a
target market can be attained through existing proprietary databases
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CHAPTER 8 EVENT MARKETING 155

or by purchasing or bartering mailing lists. Many groups provide


mailing lists in exchange for a discounted group ticket price or for a
ticket commission (i.e., for every ticket sold to someone on the mail-
ing list, $1 goes to the associated group or organization). Some groups
even work out a deal where their newsletter is printed on the back of
the promotional brochure mailed to the list, saving the group postage
fees. Publications may lend their mailing list if offered a free program
advertisement, a booth, or other form of recognition at the event.
Event sponsors are another possible source for lists, particularly car
dealers. Exclusive country club or sport organization membership
lists may also be attained through the board of directors, staff, or
acquaintances of both who are members.
While identifying the target markets and building a database,
decisions as to the type of ticket sales campaign implemented (e.g.,
telemarketing, Internet, direct mail, personal sales, print/TV/radio
advertisements, promotions) should be based on the amount of the
marketing budget, the size of the target audience, and the time frame.
Mass media may be more practical for a large, diverse audience,
while telemarketing is preferable for a more select group.
Direct-mail pieces range from a simple postcard to an elaborate
four-color glossy ticket brochure. Postcards are especially useful to
remind people that the event is approaching or to highlight a special
offer. If an event is held close to a holiday (i.e., Christmas or Mother’s
or Father’s Day), a postcard can be used to encourage purchasing
tickets as gifts.
Placing ticket brochures on cars in designated parking lots is
another inexpensive approach to targeting an audience. At The
George Washington University, cars parked in the staff/faculty lots
receive ticket brochures offering discounted season tickets to staff and
faculty.
Packaging tickets with extra amenities such as parking, conces-
sions, or merchandise has proved most successful in reaching the
family market. Such discounted promotions can be cost-shared and
marketed in cooperation with existing team or event sponsors or con-
cessionaires. As an example, for a limited selection of games, the
Colorado Avalanche offered four tickets, four mini Pizza Hut pizzas,
and four Cokes for $99. Pizza Hut and Coca-Cola each participated in
the promotion.
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156 THE ULTIMATE GUIDE TO SPORTS MARKETING

To sell end-zone or other less desirable seats, consider creating a


concept such as the Citrus Bowl did when they established the
“Zonies.” Anyone who purchases a ticket in the end-zone section is
coined a “Zonie” and is entitled to a variety of added-value benefits
such as a special T-shirt, hat, and party. “This concept not only sells
seats but creates a fan loyalty beyond the athletic event” states Joe
Lathrop, president of OCG, Inc. in Orlando, Florida, an organization-
al development company that focuses on customer service.
Contingency and theme promotions are two additional tech-
niques to encourage ticket sales. Contingency promotions include
those that require the attendee or the players to do something before
the attendee receives a benefit. Theme nights attract people to the
event who might not be the consummate fan and help make their
experience more enjoyable so that they may return in the future. Refer
to Figure 8-1 for examples.
The cost of most of these promotions should be absorbed by exist-
ing sponsors and not by the event organization. Two additional ways
corporate sponsors can assist in the marketing of an event are to con-
tribute, or sell to you at a discount, some of their prepurchased adver-
tising spots or purchase additional spots for you at a volume
discount. In addition, have corporate sponsors identify all they can
bring to the table besides cash. Airlines, for example, frequently have
the right to sell merchandise in airports. This provides an opportuni-
ty for prepromotion of the event and an additional revenue source.
Unfortunately, no two events or audiences are the same, thus it
often takes a trial-and-error approach to determine the best market-
ing mix for your specific event. For example, postcards and telemar-
keting were primarily used to sell tickets to the first Champions
Tennis Tour in Washington, D.C. After careful analysis, however, it
was determined that ticket brochures providing all relevant informa-
tion and newspaper advertisements were the most cost-effective tech-
niques and were therefore emphasized in the tournament’s
second-year marketing plan.
Coding the different marketing pieces is also essential to deter-
mine which mailing lists, advertisements, or promotions generated
the largest response. Mailing lists with a high response should be
scheduled for a second mailing (if time permits), while those with a
low response may be eliminated.
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CHAPTER 8 EVENT MARKETING 157

Figure 8-1

Promotional Ideas
Theme Promotions
• Bald night (This was a popular promotion at The George Washington
University during the tenure of coach Mike Jarvis, who was bald. Not only
did all the bald men get into the game for free, there was a contest at half-
time to find the closest resemblance to Coach Jarvis.)
• International week (The New York Mets, in conjunction with the New York
City Transit Authority, dedicated certain games to Hispanic, Irish, Jewish,
Asian, African-American, and Italian fans).
• Lawyers Appreciation Night (The Tampa Bay Devil Rays charged attorneys
double and billed by the third of an inning.)
• Conversion Day (Tampa Bay fans were rewarded for getting rid of New York
Yankee caps.)
• Birth night (A minor league baseball team invited expectant mothers to a
game, led breathing exercises between innings, voted on potential names,
and offered a year’s supply of diapers to the woman who delivered first.)
Contingency Promotions
• Offer a discounted ticket to a future game with every ticket purchased.
• Offer a coupon with each game ticket for a free Coke at the next game they
attend.
• Distribute coupons for free food or drink if the team scores a certain number
of points.
• Feature season-long themes such as collecting a different baseball card at
every game and then entering the fans with the most cards collected into a
drawing for free tickets to the World Series.
• Offer a final ticket free to customers who purchase tickets for the first three
days of a tournament.

Another fast-growing option for selling tickets is through the


Internet. A number of teams currently offer fans a spectator’s view
from the different sections and seats (e.g., Houston Astros site at
http://www.astros.com). For those customers uncomfortable with
the security of electronic transactions, the Internet sites can also pro-
vide valuable ticket information such as price, availability, and pur-
chase alternatives.

Contests and Giveaways The purpose of most sport-related contests


and giveaways is to generate interest in a sports team, event, or
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158 THE ULTIMATE GUIDE TO SPORTS MARKETING

organization in order to increase ticket sales or membership. No mat-


ter how creative or exciting a contest or giveaway may be, if your tar-
get audience doesn’t know or care about it, it will not succeed.
Likewise, if it costs more to implement than it brings in, the contest
may not be deemed successful.
To ensure a successful contest or giveaway, sport marketers must
first know their audience (who they are and what they like), create or
borrow an idea that appeals to this audience (there are few copyrights
in sports marketing), and then work with corporate and media spon-
sors to sufficiently promote the contest or giveaway. If the prize is of
a significant value, marketers should buy insurance for protection.
Although borrowing marketing ideas is acceptable in sports, you
must understand your market and know that a successful promotion
in one sport or community may not have the same response else-
where. Research and trial and error are part of the process.

Using the Right Marketing The success rate of any contest or give-
away increases dramatically as the marketing behind it increases.
That marketing includes public address and video scoreboard
announcements at events leading up to the promotion, as well as dur-
ing the event at which the contest or giveaway takes place; advertis-
ing in newspapers, on radio and television, and on the Internet; and
point-of-sale displays at sponsor locations. According to Grady
Raskin, corporate sales account executive at the Southwest Sports
Group, the purpose is to increase consumer awareness and lead peo-
ple to say, “How can I get involved?”
The advertisements should be a call to action and drive people to
the local retailer-sponsor or Web site to sign up for the contest or give-
away and then actually come to the event involved. Working with
sponsors to create and promote contests and giveaways has proved to
be the most successful model. It not only distributes costs but also
offers companies the opportunity to leverage their sponsorship and,
if done correctly, provides a winning situation for all involved.

Effective Sports-Sponsor Partnerships Following are some examples


of this type of partnership. The Texas Rangers teamed with Chick-Fil-
A to offer the Friday Night Pop-Up contest. Individuals registered at
Chick-Fil-A stores, and the selected winner tried to catch three pop-
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CHAPTER 8 EVENT MARKETING 159

ups in the outfield before a Rangers game. If he or she caught all


three, then everyone in the ballpark won a free drink at Chick-Fil-A
and the contestant won free food.
Christian Carlson, assistant general manager of Sales and
Marketing with the Salem Avalanche minor league baseball team,
worked out a deal with Harley-Davidson to donate a motorcycle and
then sold the contest idea to title sponsor Coors (later Pepsi), who
then promoted the contest through posters and other material in gro-
cery stores, bars, and restaurants. As with Chick-Fil-A, people regis-
tered at each of the sponsor outlets, and the distribution truck drivers
collected the registrations from the various sites.
Eighteen contestants were selected to attend the game where the
Harley would be won. At a pregame picnic, each contestant was
given a key, and local radio celebrities escorted contestants to the field
between innings to see whether their key started the motorcycle. The
radio station was a media partner and provided in-kind advertise-
ments for the contest. For most promotions, a media outlet can be
secured through a barter agreement.
The key to success for most contests and giveaways is how much
the individual sponsors support the promotion with large point-of-
sale displays, media tie-ins, and a prize valuable enough to keep
everyone excited. Timing is also essential. In the case of the Harley-
Davidson contest, the optimal time for the bike to be won was deter-
mined to be in the fourth or fifth inning.
“Before that inning, the sponsors do not receive enough recogni-
tion, but after the inning the excitement dies down,” Carlson said. To
keep the winner truly random yet ensure that the contest does not
drag on, each contestant selects a numbered key out of a hat, with the
number corresponding to the fourth or fifth inning previously identi-
fied as the winner.
Selecting participants of the correct age for a contest is another
important factor. An adult is much more entertaining trying to spin
around a baseball bat in a bat race than a young child with a low point
of gravity. A child, however, may be a better choice for a dress-up
dribble-and-shoot contest.
Connecting the promotion to team performance is another way to
generate interest in the sponsor as well as the team. Domino’s Pizza
received a tremendous amount of media attention when they offered
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160 THE ULTIMATE GUIDE TO SPORTS MARKETING

a dollar off a pizza in Washington, D.C., for each touchdown the


Redskins scored. In the 1999–2000 season, the Redskins’ offense cost
Domino’s more than $2 million. Similarly, Bank One launched a pro-
motion in conjunction with the Dallas Cowboys’ offense. For every
point the team scores, interest rates on certificates of deposit increase
by a hundredth of a percentage point.
For contest prizes that are not donated and have a high dollar
value (such as cars or cash), insurance should be taken out. Since pre-
mium costs are based on the statistical possibility that someone will
actually win the contest, the structure of the contest can reduce the
premium. For example, most contests are constructed so that an
unlimited number of entries are received. However, if only a few of
these entries will be selected as finalists to win the grand prize, and
of those finalists, the winner must pick the final score of a game, kick
a 50-yard field goal, or achieve some other difficult task, the possibil-
ity for a true winner decreases, and often no one wins.

Creating Successful Giveaways The success of giveaways, like con-


tests, depends on the publicity around the promotion and how the
actual item given away will be used in the future. Giveaways with the
team schedule printed on the items or the name and date of the event
being promoted (magnetic schedules, sport cups, lunch sacks) are
best.
Giveaways that are then used in another promotion are also suc-
cessful. For example, at one game you hand out posters, and at the
next game you have a pre- or postgame autograph signing party and
ask that the fan bring the poster to be signed. Or distribute T-shirts at
one game and offer half-price tickets to another game for fans wear-
ing the shirts. The Washington Capitals handed out screen savers to
game attendees, which tied in well with the launch of their revamped
Web site. Collector items such as Beanie Babies, Barbies, and Hot
Wheels have also been used as successful giveaways. Such items not
only draw attendees but also increase media attention.
Giveaway promotions should be prominently noted on all game
schedules and promoted over Web sites, public address systems,
video scoreboards, and voice mail. Although sponsors pay for most
giveaway items, you need to consider the staff time spent imple-
menting the giveaway as well as marketing costs. If the giveaway
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CHAPTER 8 EVENT MARKETING 161

does not provide an additional benefit to the team or event, you


should consider not including it in the marketing mix. Also, be care-
ful what kind of item you give out; some giveaways have been
thrown onto the field and have disrupted the game.
Contests and promotions are important tools in marketing sport
teams, events, and organizations. As the competition to attract and
keep sports fans increases and fans continue to look for extra value,
the quality and creativity of promotions must also increase. (Figure
8-2 includes additional ideas for promotion.)

Figure 8-2

Additional Promotional Ideas


• Organize a sport training program in conjunction with a local hospital or
sports medicine clinic prior to a public event (e.g., a road race) to train and
motivate participants.
• Sell or give away T-shirts, posters, lapel pins, and stickers before the event.
The more people who wear these items before the event, the more publicity
the event receives.
• Organize a communitywide contest to design the logo and mascot for your
event.
• Create a theme song or jingle that is connected to the event and can be
repeated on local radio stations. Put the name of a star athlete in the jingle.
• Invite school children to come to the event in their school uniform or school
colors.
• Create stories about the event, sponsors, athletes, and spectators and share
with the press. The New York City Marathon provides each journalist with a
press kit filled with statistics and facts from dimensions of the “longest
urinal” to the “pounds of pasta” served at the pre-event pasta party. You
must give the press something to write about.
• Ask local movie theaters to show a short clip of some of your athletes in
action or highlights of one of your previous events.
• Solicit endorsements from celebrities as well as sponsors. This not only
attracts interest from the public but also encourages press coverage. A
current example is Michael Jordan endorsing bowling or Gina Davis trying
out for the 2000 U.S. Olympic Archery Team. Encourage sponsors to hang
event banners or post information about your event at their place of business.
• Display information and hold exhibits at malls or public areas. For example,
to promote a freestyle ski competition in a nearby mountain resort, athletes
perform stunts on a trampoline in the city center.
continued on next page
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162 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 8-2 continued

• Create a holiday theme. For St. Patrick’s Day, the SkateNation ice rink out-
side of Washington, D.C., partnered with a local radio station and advertised
that the person wearing the most green would win a “lucky pot of gold.”
Additionally, they dyed the entire sheet of ice green. The promotion was
very successful, and the rink sold out in 2 hours.
• Piggyback with high-profile events to gain mass exposure. This is what the
National Handicap Sport Association did when they partnered with the NBA
and held exhibition matches during halftimes.
• Distribute promotional material at similar-type events. For example, when
promoting a fun-run hand out fliers or place fliers on car windshields at or
near other road races.
• Develop a Web site, include the URL on all marketing collateral, link to
similar events and other Web sites that attract a similar demographic as your
audience.
• Add information about your event to your voice mail message and
encourage sponsors to do the same.
• List your event in the Digital Cities area of AOL or the Microsoft City Scapes.
• Children and animals always generate lots of media and fan excitement so
periodically schedule autograph and photo sessions and even a pregame pet
show in the parking lot.
• Direct mail is also very effective in marketing to a targeted audience. The
United States Postal Service is currently working with various sport entities
to help maximize direct-mail opportunities through the delivery of creative
mail pieces such as sending CD-ROMs, Frisbees, pop-up stadiums and
postcard schedule magnets.

Marketing via the Internet


The key to successful Internet marketing is a marketable registered
URL, extensive and updated content, a site that is easy to use, pages
that download quickly, cutting-edge technology, incentives, games,
purchasing ability, and customizable content. Interestingly, advertis-
ing is not considered negative if it enhances the visitor’s experience
through contests and promotions.
The decision of what will be communicated and how it will be
expressed through words, pictures, animation, audio, or video is
essential to Web development. The content must be compelling
enough to keep Web users coming back to the site. The Web site’s
URL needs to be incorporated into all online and offline marketing
including voice mail, press releases, banners, video scoreboards, and
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CHAPTER 8 EVENT MARKETING 163

advertisements. It is also important to keep the site to less than four


levels deep. This prevents users from becoming lost in the site. In
addition, the icons or bars on the Web pages need to create clear nav-
igational paths. On each subpage of the site, always provide a way for
the user to return to the home page.
Relationships are also key to successful Web sites. Most of the well-
known Web sites (e.g., ESPN, CBS SportsLine, CNN/SI) have pros-
pered because of the media exposure received through their respective
television partners. Developing relationships with sports marketing
agencies and leagues is also important. International Management
Group (IMG) was an early investor in CBS SportsLine, offering access
to valuable athletes such as Tiger Woods. As far as leagues, Mark
Hardie of the Forrester Group predicts that “the Web will shift control
of the sports experience from broadcast networks to professional
leagues.” Rather than depend on one or two mass-media outlets,
organizations like the NBA, NFL, MLB, NASCAR, and IOC will reach
fans through a constellation of Internet-based and offline outlets. Some
fans will utilize these outlets separately or simultaneously.
For athletes, teams, and organizations, the decision of whether to
explore Web development independently or to work with an estab-
lished Web site often comes down to customization or distribution.
Athletes that sign on with AthletesDirect.com will receive tremen-
dous exposure but may not have as much flexibility as if designing
their own Web site. Similarly, a team or organization that joins
Myteam.com may receive financial guarantees but may have some
rights limited.
Another point to consider is the time and risk involved in devel-
oping your own Web site. Event organizers will need to devote valu-
able resources toward Web development that may not provide
dividends for some time. For example, Michael Payne, marketing
director for the IOC, issued a friendly reminder to the Salt Lake City
Olympic Organizing Committee that their Web site needs to break
even, as there is no budget for this venture. Sydney spent over $30
million and did not break even.
The issue of Internet rights is yet another heated topic among ath-
letes, teams, leagues, and organizations. Since its inception, the NBA
was the only league that incorporated all of its team sites under the
NBA.com site. Recently, the NHL and MLB have taken steps in this
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164 THE ULTIMATE GUIDE TO SPORTS MARKETING

direction. In March, The George Washington University hosted a


MBA Case Competition concerning “The Future Internet Strategy of
the IOC” that posed questions related to Internet rights of broadcast-
ers and other Olympic Family members. The consensus of most all
research is that the league or association at the highest organization-
al level must take control of rights and sell digital and analog rights
individually.
By controlling rights, direct and deeper relationships can be made
with fans and sponsors, and additional revenue can be generated.
Currently, the most popular revenue models for sports Web sites are
advertising, commerce, subscriptions, and ticket sales. Licensing dig-
ital rights and digital content are two additional revenue sources
expected to grow in the near future. Just look at the 11-year $6 billion
CBS/NCAA television/Internet deal. By 2004, Web revenues are pro-
jected to contribute 15 percent of league revenues, with overall adver-
tising on sports-related sites reaching close to $2.5 billion and
e-commerce related to sports estimated to rise to $5 billion.
To compete in today’s high-technology business world, sport
event managers need to understand the value of the Internet and be
able to utilize it to its full potential. Refer to “Selecting a Web Partner”
in Chapter 3.

Turning Negatives into Positives


With some quick thinking and luck, some of the most disappointing
or potentially damaging incidents can become a promoter’s dream.
Dewey Blanton, former director of public relations for ProServ, recalls
a tennis event from which Andre Agassi pulled out because of an
injury:
For three months Andre’s name was promoted as the headlin-
er for the event, but a few days before, he canceled, disap-
pointing a number of fans. In an effort to rectify the situation,
we convinced Andre to speak to the press and explain the
injury in his own words. The media attention received
through this personal announcement gave a huge boost to the
tournament in terms of public awareness. The interview was
covered by every major television and radio station, as well as
all the print media in the area.
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CHAPTER 8 EVENT MARKETING 165

Another example of how a negative can turn to a positive is described


by Christian Carlson, assistant general manager of Sales and
Marketing for the Salem Avalanche minor league baseball team:
We originally scheduled a séance to end the first half of the
1997 season to exorcise the evil demons that were hanging like
a black cloud over the team. It was an effort to make fun of
how bad we had been, not making the playoffs since 1988,
including not having a .500 half in that time. We had booked
a magician/performer to hold the ceremony, billing him as a
local medium in contact with the spirit world.
The response was not at all what we expected. The
Christian radio stations in town came after us with a
vengeance. They started running an editorial every half hour
telling people to call and tell us how upset they were for tak-
ing something like a séance so lightly and threatening to bring
evil spirits down on the Roanoke Valley. They were going to
boycott the team and deluged us with phone calls.
Our response was to cancel the ceremony, instead holding
a good luck ceremony with a different performer (the first one
backed out when the heat came down). We made the
announcement on the Friday before the ceremony was to take
place, holding a press conference at the stadium in the morn-
ing that was broadcast live on all the Christian radio stations.
In exchange, the Christian stations promised to fill the stadi-
um on a separate Christian Family Night two weeks later, also
on a Saturday. It was a logo ball giveaway night, so we expect-
ed a good crowd, especially on a Saturday. We were not pre-
pared for what happened.
They did fill the stadium, setting a stadium attendance
record with 8,379 fans that night. The radio stations asked
everyone to wear white, and it was a sea of white in the stands
that night, especially considering our stadium only seats
6,300. The concession stands were slammed and couldn’t keep
up with the demand. We ran out of french fries in the first
inning and were cleaned out of almost everything else by the
end of the night. The crowd was into the game, cheering loud-
ly at all the right times and getting the players real excited. To
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166 THE ULTIMATE GUIDE TO SPORTS MARKETING

thank everyone for their patience and support, we told them


they could bring back their ticket stub from that night’s game
and exchange it for a ticket of equal or lesser value at any
remaining home game that season. The PR value of the free
tickets was worth any revenue lost, plus we had a guaranteed
renewal for our logo ball sponsor after the tremendous expo-
sure they received that night.
Overall, it was the best night at the stadium, with the
crowd happy, the sponsor happy, the players excited, and a
negative was turned into a positive with a little spin.

Working with the Media


When contemplating how to improve media relations, consider the
three factors of time, timing, and times to remember. Time refers to the
amount of time spent working on developing relationships. Timing
pertains not only to the best time to communicate with media but the
actual timing of activities during an event that will assist the media in
completing their work. And finally, times to remember involves any
stunt or activity that will catch the attention of the media before, dur-
ing, and after the event.
Without question, there is no substitute for taking the time to get
to know journalists and broadcasters on a personal level. Personal
relationships are key to getting telephone calls accepted and to reach-
ing a more receptive listener. It is therefore imperative that time be set
aside to contact targeted media not just the day or two before the event
but on a continuous basis year-round. Basically, the media needs to be
convinced or “worn down” over a period of time. All verbal commu-
nication should be followed up with written documentation via fax, e-
mail, or express or regular postal delivery at the specific time
requested by each media entity. The story also needs to be laid out so
that the editors or reporters see it as beneficial to their audience.
Personal relationships aside, the type and level of event, as well as
the content and twist of promotional materials, will influence the
media’s interest in a story. From a survey of over 20 sport editors across
the United States, Figure 8-3 lists the top 10 reasons for selecting stories.
Unless your property is the Super Bowl or Olympic Games, one of
the most difficult challenges for a publicist is obtaining pre-event edi-
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CHAPTER 8 EVENT MARKETING 167

FIGURE 8-3

Top 10 Reasons for Story Selection


1. Newsworthiness—Is this an important event in which readers should be
informed?
2. Oddity—Is there something unusual about the event that would make
interesting reading?
3. Prominence—Will high-profile celebrities attend or participate in the event,
and what are the financial stakes?
4. Urgency—Is the story something that readers need to know immediately?
5. Timeliness—Is this an “in” event or current “trend” of interest to readers?
6. Relevance—Is there someone participating in this event from the local area
or is a local business supporting the event?
7. Conflict or tension—Is there some scandal or heated rivalry that would
spark the readers interest?
8. Impact—Will this event personally effect readers or the community at
large?
9. Competition—Is it a slow news day? If yes, profiles and features are more
likely to be run.
10. Instinct of editors—Based on experience and knowledge of the readership,
is this story appropriate for the newspaper?)

torial coverage. A fairly successful tactic is to sign on a local television


or radio station, or a newspaper to be a sponsor or promotional part-
ner. Even then, however, the media needs something “provocative” or
“unique” about which to report (the oddity factor). For the Nuveen
Tour of Champions, Steve Griffith worked with a local television sta-
tion to promote the “Tweener” contest. A “tweener” is when a tennis
player returns a lob shot in between their legs. The contest challenged
viewers to try and duplicate a “tweener” shot during breaks in the
tournament. Each day of the tournament a different person was select-
ed to try the “tweener” from those who entered the contest. This con-
test not only achieved great event exposure one month out but created
tremendous media interest during the tournament as well.
Another way to attract media attention is to add local celebrity
flavor. When the NBA All-Star Game was held in New York, cast
members from 11 of the running shows performed in a halftime show
called “Basketball on Broadway.”
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168 THE ULTIMATE GUIDE TO SPORTS MARKETING

Providing the media with a video news release is also a powerful


way to gain media coverage. Television exposure of the Sydney
Olympic torch relay jumped when the organizers provided media
with a video news release picturing the torch being carried underwa-
ter by a scuba diver through the Great Barrier Reef. This also certain-
ly helped boost Australian tourism.
Once you attract the media and they come to the event, there is no
substitute for servicing them to the highest degree. They should be
provided both technical and personal support. Technical support
includes the availability of telephones, computer hookups, copiers,
and even closed-circuit television. Refer to Figure 8-4. Personal sup-
port includes easy access to food and beverages, restroom facilities,
and hotel accommodations. This may require serving or having food
service available for breakfast, lunch, dinner, and late-night meals,
depending on the schedule of events. Special bus shuttles to and from
the media hotel to the event facility may also be required.

Figure 8-4

Steps to Setting Up a Media Center


Created by Jennifer Jordan-Lock
1. Determine the size of media center needed based on the number of media
who will attend the event and will need a place to work.
2. Identify a location at the sport venue. The site must be convenient to media
seating, press conference room (if separate from the media center), and
mixed zone (if applicable). Also, if there will be photo processing in your
media center, the location needs to be convenient to water and drainage.
3. Create a layout for the center with media staff offices; work area with tables,
chairs, power and phone distribution; lounge for hospitality; results
distribution area; help desk; administrative areas; and storage. If the media
center will also house press conference area, create a layout for dais, seating,
and camera platform.
4. Use the layout to create an equipment list for tables, chairs, platforms,
storage units, banners and other look elements, temporary walls, and any
items that need to be custom made.
5. Determine technology needs: phones, faxes, computers, copiers, televisions
with live feed of the competition, microphones, sound systems, and power
distribution.
6. During move-in, make sure that equipment is placed according to layouts.
continued on next page
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CHAPTER 8 EVENT MARKETING 169

Figure 8-4 continued

7. Test all technology once it’s installed to make certain it is working properly.
8. If your event has multiple venues, you may need to create a primary media
center and one or more subcenters. If this is the case, the primary center may
not be located at a sport venue, but will still need to be conveniently located
to facilitate transportation to the competitions. The steps to set up a
subcenter are the same as above, but on a smaller scale.

Furthermore, the pressroom should be open long before the event


commences and should not close until all reporters have had suffi-
cient time to file their stories. This means making certain arrange-
ments for lights and air-conditioning or heating systems to remain on
in the building once the event is over. This also requires keeping cer-
tain gates open near media parking or shuttle pickup so journalists do
not have to walk halfway around the building to exit.
Before the pressroom opens, all equipment should be checked to
ensure it is in working order. This is especially true if a press confer-
ence is scheduled. Timely materials should also be ready, as the media
expects to receive current facts, quotes, and statistics pertinent to the
day’s competition and activities. The more information that you can
provide, the better.
Helping journalists get to their destinations in a timely manner is
also important. Although the solution may seem somewhat elemen-
tary, Sue Carpenter, who previously worked for World Cup Soccer and
Olympic Soccer, received great acclaim for placing duct tape along the
different travel routes that the media took during these international
events. For the Olympic preliminary soccer matches in Birmingham,
Alabama, different-color duct tape outlined the path from the press box
to the photographer’s area, to the mixed-zone, and to the field of play.
This not only reduced the number of questions asked but increased the
comfort level of the media, especially for foreign journalists. Figure 8-5
suggests ways of getting the most out of the media.

PART II: CORPORATE EVENT MARKETING


According to Ton Bil, director of De Produktieven Effective
Marketing and Publicity, there are five P’s of event marketing: partic-
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170 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 8-5

Maximum Media Value Checklist


____ Provide media training for event employees, athletes, coaches, and key
volunteers within the sport event organization.
____ Establish common “positions” and editorial responses on all vital issues
and elements in order to deliver an honest, effective, and unified message
to the media and the pubic. Event directors often instruct volunteers, staff,
and vendors not to provide interviews without approval from a supervisor.
____ Create an unusual signing event. Atlanta Olympic officials went
Hollywood when they “cemented” the deal with the producers of the
opening and closing ceremonies, Don Mischer and David Goldberg. The
act of placing their hands in cement not only received widespread photo
coverage but the cement will be part of the new Olympic Stadium.
____ Provide a video or audio news release (VNR/ANR). The VNR is a short
prerecorded videotaped segment of your event (either past or present)
that shows the color and, if possible, sponsors of the event. The VNR can
be delivered overnight to media outlets or through the use of satellite
transmission whereby television stations are alerted to the satellite coordi-
nates and time the VNR would be available to download. This is an excel-
lent way for small stations to cover your event without having to send a
camera crew. When producing a professional VNR/ANR, remember to
keep it brief and brilliant to capture the attention of the listener or view-
ers. Stay away from brazen promotion of the team or individual players
and concentrate instead on the importance of the sport event itself. Radio
and television production firms can assist you with the production and
transmission of the VNR/ANR.
____ Find someone to interview you on radio. Select an approach that makes
sense for the station so that the interview does not appear self-serving. An
example of this technique is to contact a specific radio talk show host who
is interested in college basketball’s Final Four competition. Use the host’s
interest as a way to open the door to discussions about the growing
importance of college basketball programs such as yours.

ipation, product and brand experience, promotion, probing, and


prospecting.
1. Participation refers to having your consumers attend the event
and actually interact with the company during the event,
whether visually, verbally, or tactually.
2. Product and brand experience involves distributing samples or
having the consumer physically try on/try out your product on-
site at the event.
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CHAPTER 8 EVENT MARKETING 171

3. Promotion includes generating media exposure by creating sto-


ries within the event and further increasing corporate awareness
via event-related coupons and sweepstakes.
4. Probing entails conducting research before, during, and after the
event to make sure you are effectively reaching and penetrating
your target audience.
5. Prospecting implies that companies should approach event mar-
keting as a long-term commitment to effectively see returns on
investment.
Basically, for this type of event marketing to work, a company must
be willing to incorporate all marketing resources into the event from
sales, advertising, public relations, and promotions. Therefore, event
marketing is an integrated marketing approach (see Figure 8-6). Sport
event marketing has proved to be one of the most effective event
marketing platforms because of the opportunity to reach a specific
target audience in an enjoyable and healthy environment. At sport
events, there is ample opportunity to interact with consumers on-site
before, during, and after the sport event, as well as off-site through
direct mail, advertising, and promotions.

Budgeting
A corporation that enters a sport event sponsorship should not think of
the rights fees as the end of its commitment or view this event as a one-
time involvement. Companies should adequately support their spon-
sorship agreement by budgeting at least one to three times as much as
their initial sponsorship fee for promotions, advertising, and hospitali-
ty and another 3 to 5 percent for market research. Olympic sponsors,
for example, spend $40 to $60 million on rights fees, as well as an addi-
tion $60 million on television advertising around Olympic program-
ming, along with additional millions on hospitality and promotions.
Companies also need to allow equity to build over time. Research
shows that it takes from 10 to 50 images to make one impression on a
consumer. Figure 8-7 provides ways to maximize sponsorship value.

Getting Your Event Televised


Because of the growing number of broadcast mediums, there is a
great demand for sport programming. Television stations, however,
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172 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 8-6

Internet

Merchandising Public Relations

Broadcasting/ Hospitality
Sport Event
Narrowcasting

Promotions Sales

Advertising

are driven by advertising dollars, and cable stations are driven by


both advertising and subscription fees. Your event must therefore
meet certain criteria in order to interest a network or cable station in
televising your sport events.
If you are fortunate enough to have what the industry calls “a hot
property,” then you may reasonably expect that a television station will
pay all production costs as well as a rights fee for your sport event. Rights
fees for hot properties such as professional sports and collegiate basket-
ball and football are typically negotiated by the leagues, conferences, or
teams to allow one network exclusive rights to broadcast their sport
events. Millions of dollars are paid for the exclusive rights to the Olympic
Games, and to major league baseball, football, hockey, and basketball.
If your sport event is considered good but not hot programming,
the station will sometimes enter into a barter agreement with you,
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CHAPTER 8 EVENT MARKETING 173

Figure 8-7

How to Increase Sponsorship Value


• If you purchased the rights to be a title sponsor, turn around and try to sell a
tie-in to someone with whom you are conducting business. A perfect exam-
ple is Home Depot’s leveraging of its 1996 Olympic sponsorship by allowing
its vendors (for a price) to use the Olympic rings on product packaging sold
only in Home Depot stores, not on products carried in other stores.
• Incorporate the event name and logo in existing advertising.
• Sponsor an entertainment stage or pin-trading center where spectators and
participants gather before, during, or after an event.
• Create a theme for your sport event sponsorship. To promote the
“Popwatch,” Swatch freely distributed popcorn, lollipops, and Popsicles dur-
ing an event the Swiss watch manufacturer sponsored.
• List the competition results in your entrance office window.
• Offer a special prize to the first person to pass by a branch office or corporate
headquarters (assuming the sponsor has an office located along the course).
• Produce a limited number of specially designed beer and soft drink cans or
posters that make interesting collectibles.
• Provide a shuttle bus to and from your place of business to the sport event.
Local media will frequently promote this service, which generates free pub-
licity for your company.
• Telecommunication sponsors could make it possible through public or cellu-
lar phones for athletes to reach out to friends and relatives immediately after
their event.
• Sponsors that fly blimps or hot-air balloons with their name and logo attrac-
tively displayed should offer rides to the press, photographers, television
reporters and crews, and guests before, during, or after the event.

which means that you provide the program free to the broadcaster
(produce the show) and split the commercial inventory (advertising
spots) with the station. In this case, you hope to recoup your pro-
duction costs through the sale of advertisements or increased spon-
sorship fees.
Another option, usually the least appealing and most expensive,
is to purchase airtime directly from the station. This option makes
you responsible for producing the entire sport event program and for
selling all the advertising spots.
Depending on your programming status, radio stations will offer
you similar arrangements. Figure 8-8 describes ways of increasing
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174 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 8-8

Increasing Your Chances for Media Success


• Make sure talent or celebrities are involved. Celebrities attract people to
watch.
• Network and get to know the station director, general manager, or someone
who will get you in the door. People listen to people they know and trust.
• Be organized and respect the decision maker’s time.
• Offer a quality sport event attractive to advertisers.

your chances for success in getting the media to broadcast your sport
event.

GAME HIGHLIGHTS
• Whether you are a sport event marketer or working for a com-
pany incorporating event marketing, the steps in planning your
marketing strategy are to consider the type of sport event,
research the sport and event, determine the target audience,
identify the various type of marketing opportunities, devise a
budget, delegate responsibilities, plan for evaluation, and imple-
ment the plan. Commitment and creativity from everyone
involved are key ingredients to success.
• To maximize a sponsorship, companies need to spend one to
three times the amount of rights fees in leveraging the sponsor-
ship.
• The first step in attracting an audience is to determine the price
threshold and appropriate target markets. A marketing cam-
paign should then be developed and individualized toward the
different audiences and within the designated budget.
• If you want to get your event on television, understand the
value you bring to either a cable or network station and make a
proposal.
Graham 09 10/5/01 1:30 PM Page 175

P
2 A R T

PRACTICAL METHODS
FOR ACHEIVING SUCCESS
If you have confidence, you have patience.
Confidence, that is everything.
Ilie Nastase, tennis player

Copyright 2001 The McGraw-Hill Companies, Inc. Click Here for Terms of Use.
Graham 09 10/5/01 1:30 PM Page 177

C H
9
A P T E R

FINANCING
SPORTS EVENTS
The more money you have, the faster you go.
A.J. Watson, car designer, on the importance
of money in auto racing

T HERE ARE NUMEROUS OPPORTUNITIES to host and produce


sport events, but the questions remain: How will the
event be financed and be profitable? Where do you find
starting capital? What is required to achieve profitability for
your sport event?
Maybe you are a volunteer who has agreed to chair a
local fund-raiser road race and just realized that it typically
costs at least $8,000 to $15,000 to produce a 10K race. Or,
perhaps you are an entrepreneur who has a unique sport
event idea but no capital to support it. The challenge for
cash, support, and profitability are universal across the
event industry.

FINDING CAPITAL
A sound business plan is one way to find investors who will
provide you with start-up capital for your sport event (see
177

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178 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 9-1). If you are an employee or member of a sport commission


seeking funding to bid for an event, this plan may take the form of a
grant proposal submitted to a government entity (e.g., Office of
Economic Development or the State Tourism Department). For most
events, however, corporate sponsorship is the primary source of
financing.
Why do corporations sponsor sports events and how can you
build successful partnerships? As Lisa Delpy Neirotti describes in her
sponsorship seminars, “Sport events offer corporations endless
opportunities to introduce, showcase, differentiate, and move prod-
uct; reward sales staff; entertain current and/or potential clients;
increase media and public exposure; enhance or change an image;
improve employee morale; reach new market segments and distribu-
tion channels; and lock out competitors.” The medium of sport is not

Figure 9-1

Elements of a Successful Sport Event Business Plan


• List the key persons responsible for planning and managing the sport event
and their relative experience.
• Find people who will vouch for their experience (include written testimoni-
als).
• Briefly describe the sport event including date(s), time(s), location(s), history,
and purpose.
• Identify what you have to sell and all of your rights (e.g., merchandise, TV,
and signage). Determine the rights that you wish to keep and those that are
available for sale.
• Determine how to protect the rights that you have for sale so that competi-
tors or non-rights-holders have no opportunity for ambush marketing.
• Briefly describe the demographics of the participants and spectators and the
estimated economic impact they will generate.
• Describe your marketing, sales, advertising, public relations, hospitality, and
promotions plans.
• Explain how you will amortize this capital investment and repay the loan.
• Describe your risk management procedures, including cancellation insur-
ance, to further assure your investors that their investment is well protected.
• Name your accountant or chief financial officer, and describe the type of
record keeping you will provide and when you will distribute periodic state-
ments of income and expenses.
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CHAPTER 9 FINANCING SPORTS EVENTS 179

only valuable to corporations because of its universal appeal, but it


delivers a captured and defined target audience in an environment
encompassing their lifestyles. In brief, a consumer is motivated to
attend the sporting event, and a corporation is motivated to sell a
product or service to these consumers.
Securing a sponsor may very well be the single most important fac-
tor in determining the success of your sport event. Sponsorship dollars
bring revenue that buys better facilities, additional staff, and a greater
experience for participants. Considering the importance of sponsorship,
learning and applying a successful strategy is extremely critical. Mike
Dyer, vice president of New Development for the NBA, recommends
listening as much as speaking when recruiting sponsors. Find out what
the sponsor needs or wants. Be sure to include measurable components
and then validate through research and follow-up reports. Sponsorships
are relationship-driven, so service at the high level but within reason—
a sponsorship should not cost you money! The following suggestions
have been gathered by Lisa Delpy Neirotti from a variety of experts in
the sport event marketing field and serve as an excellent footprint.

Step One: Know Your Event


The first step in securing a sponsor is determining if sponsorship is
even beneficial for your event. Richard Nealis, race director for the
Marine Corps Marathon, has just recently entered the sponsorship
arena. Mr. Nealis stated that “for most of its existence, the Marine
Corps Marathon has been known as the ‘People’s Marathon.’ We
conducted the Marathon without sponsors, prize money, or much
media coverage. Our goal was simple—to promote athletics and the
Marine Corps ideology. In the last few years, however, we have been
open to a limited amount of sponsorship to help offset our increasing
costs for police coverage and street closures. We wanted to keep the
cost to the participants as low as possible, and corporate sponsorship
is helping us achieve that. Our entry fee is $35, while most other
marathons range from $55 to $75.”
Assuming that sponsorship is a good thing for your event, you
must then decide what your event has to offer to a corporation. What
benefits can you bring to the table to make your event look attractive?
Refer to Figure 9-2 for an example of potential benefits for a title spon-
sor. Be sure that you can deliver on all proposed benefits. For example,
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180 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 9-2

An Example of Benefits for a Title Sponsor


Title Rights: Corporate Name and/or logo to be incorporated in event name
Media Coverage: (Separate out only if you have TV coverage; otherwise,
include with pre-/post-event exposure) For example, in negotiation with
ESPN to cover the event or ESPN will air event for 1 hour live on Saturday;
invitations will be mailed to all local radio and TV stations with a personal
follow-up to encourage coverage of the event.
Pre-/Post-Event Exposure
Name and/or logo included in:
• Press releases mailed before and after the event to …
• Registration packets or direct mail brochures mailed to …
• Promotional fliers/posters distributed at all local sport retail outlets, other
road races, and so forth
• Tickets
• Web site with reciprocal link to the sponsor’s Web site
• Bill stuffers with phone or electric bills or bank statement
• Point of sale (POS)
• Street banners
• Pre-event functions (pro-am, press conference)
• Thank-you letters mailed to …
On-site Exposure
• Signage (Two 10-foot x 10-foot, banners to be provided by sponsor)
• Half-page advertisement in program (1)
• Public address announcements (3 per match)
• Video scoreboard advertisement
• Name and/or logo included on:
– Athlete bib
– Volunteer and staff uniforms
– Official merchandise
• Single-event sponsor (special recognition around one specific event; e.g.,
100-meter dash)
Merchandise Opportunities
• Booth space for product display, promotion, or sale products/services
• Sampling and/or coupon distribution
• Interactive kiosk or activity
• Official location for registration pickup
• Exclusive product concession rights
continued on next page
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CHAPTER 9 FINANCING SPORTS EVENTS 181

Figure 9-2 continued

Entertainment Opportunities
• 10 event tickets
• 7 VIP parking passes
• One 10-foot x 20-foot private tent (catering not included)
• 10 invitations to VIP post-event reception
Additional Benefits
• Market research opportunity
• First right of refusal option
• Event evaluation report
• Access to event mailing list
• Exclusive concessionaire rights (depending on venue)
• Access to event athletes for one promotion or advertisement
• Opportunities for cross-promotions and cause-related marketing

do not offer street banners if your community has a law prohibiting


them. Most sport events also offer different levels of sponsorship, as
outlined in Figure 9-3. The higher the level of sponsorship, the more
benefits should be received.
In addition to the physical benefits listed, you must know the size,
demographics, and psychographics of your audience so that a correct
match can be made between the event and corporate sponsor. To cal-
culate the size, consider the number of people who will actually
attend the event, as well as the number of people who will watch the
event on television (if applicable). It may also be of interest to spon-
sors to see how many people participate in the sport, especially if it is
on the rise. Demographics include age, sex, income, educational level,
and marital status, while psychographics include attitudes, opinions,
and lifestyles. Such statistics can be found by either conducting
research on-site at your event or a similar event or by contacting the
national governing body of the sport or a related trade publication or
organization or purchasing the data from sports-related research
companies. The Sports Summit Sports Business Directory and the
Franklin Quest Sports Market Place Directory provide contact informa-
tion for all these sources. Some statistical facts can also be found in
the Sports Market Place Directory.
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182 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 9-3

Generic Levels of Sponsorship


Title Sponsor (e.g., The Kemper Golf Open)
Presenting Sponsor (e.g., The Fiesta Bowl presented by Tostidos)
Supporting or Associate Sponsors (Companies that sponsor but at a lower
level than the first two categories)
Official Suppliers (Companies that provide value-in-kind, or VIK, services or
goods)
Individual Donors
• Sponsorship titles are not consistent throughout the industry.
• Each level of sponsorship should offer different amounts of benefits based on
the value of the sponsorship.
• There should be only one sponsor per product category, but many categories
can be divided into various components (e.g., the beverage category could be
separated into water, carbonated drinks, isotonic drinks, fruit drinks,
coffee/tea, malted beverage, and distilled beverages).

Another aspect of knowing your event is knowing how much it is


worth. Unfortunately, there is no magic formula on pricing sponsor-
ships. Begin by evaluating the value of each of the benefits identified,
including the amount of media in terms of number of newspaper col-
umn inches and television ratings (if applicable). Also try to calculate
the number of impressions your event receives. This is especially
important to advertising types who are familiar dealing with cost per
thousand impressions (CPM). Finally, look at what the market will
bear…what are other similar events in your area receiving for spon-
sorships?
According to Lisa Ukman of the International Events Group, “One
of the primary factors in the determination of sponsorship fees is the
cost of media in your market. The same property in Cleveland is not
worth nearly as much as the same in Los Angeles. Then you look at the
competitive marketplace.” Is your sport event the only such event with-
in 200 miles, or are there five others? Is your event a first-time event or
is it established? What is the cost to sponsor other properties similar to
yours? Is there more value for one product category over another? For
example, if the event entitles the sponsor to on-site sales rights of soft
drinks or candy, then it may be worth more to sponsors in those cate-
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CHAPTER 9 FINANCING SPORTS EVENTS 183

gories than to a bank. However, when you ask corporate management


for $50,000, their first consideration will be, what else can we do with
this money? How much other media time can we buy? How many peo-
ple will we be reaching? How many trade deals could we cut?
Although tangible benefits are important, do not completely dis-
count the intangibles of your event. As pressure increases on compa-
nies to be socially responsible, your event worth also increases with
the number of intangible and cause-related images. Ukman explains
that “where sponsorship can beat out measured media is its ability to
increase a company’s share of heart, its qualitative as opposed to
quantitative impact.” Cause-related marketing involves a commit-
ment to your event above and beyond sponsorship dollars. Visa, an
Olympic sponsor, donates a percent of all U.S. customer purchases
during the period of the Olympic Games to the U.S. Olympic team.
General Motors, a WNBA sponsor, donates $1 toward the Breast
Cancer Foundation for every WNBA ticket purchased.

Step Two: Prospecting Corporate Sponsors:


Primary and Secondary Research
Although the thought of research may frighten some people, it is the
most important factor, other than luck, in recruiting corporate spon-
sors. There are two basic types of research: primary and secondary.
Primary research ranges from personal observations to original sur-
veys and interviews. Secondary research involves reading local and
national newspapers and trade publications and using industry
resource books.
Examples of primary research include walking or driving through
the commercial district where the event will take place, noting the
types of businesses there, and questioning participants and attendees
at the event about what products they use or intend to buy within the
next six months or on what items they most frequently spend their
discretionary income. For instance, a survey conducted by Lisa Delpy
Neirotti at the Lone Star Junior National Volleyball Tournament in
Austin, Texas, revealed that 100 percent of the participants spent dis-
cretionary money on clothes and primarily shopped at the Gap.
Guess who then received a sponsorship proposal?
Attending Rotary Club and Chamber of Commerce meetings or
presentations by corporate CEOs and executives are also examples of
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184 THE ULTIMATE GUIDE TO SPORTS MARKETING

primary research. Through these activities, you can learn more about
your business community and personally meet people who may have
an interest in your event.
Another example of primary research is attending events similar
to yours and taking notes on the type of corporate sponsors as well as
the benefits those sponsors receive. Then you can take those notes
and either specifically design a proposal to those companies or go
shopping. Shopping literally involves walking through the aisles of a
supermarket or store and recording the different brands and products
surrounding those of the sponsors on your list. If the sponsor pro-
vides a service, go to the yellow pages and research their competitors.
This leads us to the discussion on secondary research.
Secondary research sources include the yellow pages, your local
newspaper, The Wall Street Journal, the IEG Sponsorship Report,
Advertising Age, and the Sports Business Daily and Journal. Reading
such publications keeps you current with both business and social
trends. The local newspaper is helpful in identifying businesses that
are moving to or expanding in your area. The Wall Street Journal and
Advertising Age provide information on corporate strategies and
future marketing campaigns. And the more industry-specific publi-
cations such as the IEG Sponsorship Report and the Sports Business
Daily and Journal offer examples of sponsorship deals that have been
signed or are in negotiation. It is here that you may learn of a compa-
ny’s interest in a particular sport or demographic that fits your event.
Other important resources are the Fact Book, IEG Directory, and the
Internet. The Fact Book provides a comprehensive listing of companies
that sponsor sports, as well as a detailed description of those compa-
nies, including a company profile, current sport marketing activities,
and names of decision makers and outside agencies. The IEG
Directory provides information (number of spectators, budget, and
sponsors) on more than 4,000 events produced in the United States
from art festivals to sports events. The Internet also provides access to
corporate information through annual reports or other documenta-
tion posted on a company’s Web site. The wording used to describe
their company can also be incorporated in the body of your sponsor-
ship proposal.
Often the method of identifying and recruiting sponsors depends
on the type and size of your event. Figure 9-4 offers more specific
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CHAPTER 9 FINANCING SPORTS EVENTS 185

Figure 9-4

Suggestions for Recruiting Sponsors


• If your event involves or honors Olympic or professional athletes, find
out the companies those athletes have endorsement contracts with. Your
event offers those companies an opportunity to leverage their athlete’s
endorsement deal and further solidify the relationship between the athlete
and the company.
• If your event benefits a nonprofit organization, survey the organization’s
board to see whether members would personally forward your sponsorship
proposal to decision makers in their respective businesses or introduce you
to other influential business leaders. For university sport teams, successful
alumni can serve in this capacity.
• If your event is small, research the sponsors of larger events or attractions in
your community, as those companies may view your event as a way of
enhancing their existing investments. Derek Murphy, former director of
Sports Marketing for American Express, said that “American Express may
consider sponsoring small or grassroot events in Austin, Texas, because they
would enhance or piggyback on their sponsorship of the Dallas Cowboys,
who train in Austin.”
• Ask committed sponsors to provide endorsements and evidence supporting
the value of the sponsorship. Existing sponsors could also be offered an
incentive of a 10 percent refund on their sponsorship fee or increased
benefits if they bring another corporation to the table. This works well
with companies such as McDonald’s or Pizza Hut, who have strong ties to
companies such as Coca-Cola and Pepsi, respectively, or a grocery chain that
works with a number of consumer products.
• Offer your media sponsor a category that you are unlikely to sell and allow it
to bring in a cosponsor (one of its advertisers).
• Approach businesses that your organization or your existing sponsors
support such as legal, accounting, and telecommunication services; printers;
and other vendors. This includes companies that have expressed an interest
in conducting business with your organization. Existing sponsors may also
be able to provide a list of vendors or companies that have courted their
business.
• Guarantee or enhance sales volume. For example, the sponsorship agreement
between the American Canoe Association (ACA) and Subaru included a sales
promotion that offers a three-year service contract ($500 value) to any of the
25,000 ACA members who buy a Subaru plus a $150 rebate per car to the
ACA. In less than a year, the ACA became the largest Subaru dealership in
the United States, accounting for the sale of over 200 new Subarus.
• Offer a discount for an early sponsorship commitment.
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186 THE ULTIMATE GUIDE TO SPORTS MARKETING

suggestions for identifying and recruiting sponsors that involve both


primary and secondary research.

Step Three: Making the Contact: Writing a Proposal


Once you have narrowed down the field of prospects, the next step is
to make contact with or identify the correct person at each company.
Some corporations have an entire department dedicated to sport mar-
keting (e.g., Anheuser-Busch, Coca-Cola), while others assign one
employee to scrutinize incoming proposals and forward the best to
appropriate departments. The Fact Book provides contact information
for each company. Although difficult, try to set up a telephone or in-
person meeting to introduce yourself and to discuss your event and
the needs of the company. If this is not possible, be sure to do your
homework. Confirm the correct spelling of the name and mailing
address of the appropriate contact person, and find a personal refer-
ence or link that you can use to tie the company and event together.
Include this information in the first sentence of your cover letter (e.g.,
“I recently met Mr. Connection who suggested I contact you.” Or, “I
recently read that your company wants to increase your market share
of 10- to 14-year-olds, and this is the target audience for the XYZ
event”). Refer to Figure 9-5 for a sample cover letter.
If you do make a call and the person contacted is not interested,
ask if there is another person or division within the company to con-
tact or send a proposal to. For events that involve a large amount of
media exposure, the company’s advertising agency may be appropri-
ate to contact. For charitable events, see if the company has a non-
profit foundation with money to support the event. Still other areas to
research are human resources, public relations, brand promotion, spe-
cial events, and ethnic marketing.
The written proposal that should accompany the cover letter need
not be an expensive four-color production, but it should be profes-
sionally executed. Refer to Figure 9-6 for a sample layout. Be sure to
ask whether the company has any sponsorship guidelines. M&M
Mars, for example, will provide this information to you upon request.
While every event marketer has his or her own personal prefer-
ence or ideas on how to develop a proposal, Marty Grabijas, director
of sales and market development for SnowSports Industries America,
offers nine qualities of a successful proposal:
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CHAPTER 9 FINANCING SPORTS EVENTS 187

Figure 9-5 Sample Cover Letter

[Date]

Mr. John Doe


New Product Development
Eastman Kodak
Four Concourse Pkwy, Suite 300
Atlanta, GA 30328

Dear John:
Eastman Kodak means quality images. The sports of canoeing, kayaking, and
rafting mean having fun while getting wet.
Capturing the fun experienced on river trips has always been a problem for
both serious paddlesport enthusiasts and occasional commercial raft customers.
Eastman Kodak has solved that problem with its line of waterproof FunSaver
cameras and the American Canoe Association is the vehicle to deliver that
message.
Founded in 1880, the American Canoe Association has grown into the nation’s
largest paddlesport organization. Steeped in tradition, we are quick to respond
to the rapid evolution of our sport and represent all aspects of paddling. In
addition to certifying whitewater instructors across the United States, we
sanction over 700 events per year, govern the United States Wildwater Team,
and aggressively promote river conservation and stewardship. We also
represent corporate sponsors such as Subaru of America.
The enclosed program will provide Eastman Kodak with great exposure
throughout the paddlesport community. Its real strength, however, is its
ability to motivate sales to over 4.2 million adventure seekers.
Thank you for reviewing the enclosed information, John. I will take the
liberty of contacting you within the next few weeks. In the meantime,
I can be contacted at XXX-XXXX.

Sincerely,

Marty Grabijas
Director of Sales &
Market Development

Enclosures
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188 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 9-6

Sponsorship Proposal Blueprint


Lisa Delpy Neirotti
1. Overview paragraph to describe proposed event, managing organization,
and those who will benefit.
2. Event facts and history:
• Title
• Date
• Location
• Participants (names of athletes and/or artists)
• Attendance—previous and expected
• Media coverage—previous and expected (include examples in appendix)
• Benefiting charity or cause (name benefactors and level of charitable
contribution)
3. Demographics of participants and spectators
4. Benefits available to sponsor (refer to Figure 9-2)
5. Sponsorship fee

1. Satisfies prospects wants and needs—You may think that your pro-
posal is a work of literary genius, but look at it from the per-
spective sponsor’s viewpoint—it is just another piece of junk
mail.
2. Differentiates your event from other marketing opportunities—The
truth is that your proposal is among many others that land on
an already overtaxed marketing manager. You must therefore
efficiently show that manager how your opportunity is different
and how the event will deliver (a performance guarantee in the
proposal adds to your accountability). Whenever possible, use
examples of how your event has increased sales for other spon-
sors and how it can affect the bottom-line.
3. Details the benefits, rather than the features, of your event—When
buying a new car, you may not care that it has a six-cylinder,
dual overhead cam engine with four valves per cylinder. All you
care about is that it is fast. Use this mentality when writing your
proposal and explain, in very concise terms, the benefits that the
event offers.
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CHAPTER 9 FINANCING SPORTS EVENTS 189

4. Pushes the prospects “hot-buttons”—While corporations ultimately


sponsor events to impact their bottom line, their inherent corpo-
rate culture may place a high value on providing educational or
volunteer opportunities for their employees, maintaining a high
community profile through community support and economic
development, or aligning themselves with environmental efforts.
Hot-buttons can be identified by reading annual reports as well
as sales and marketing material and by listening to presentations
made by the CEO or reading articles written by a corporate
executive.
5. Identifies cross-promotions—Above and beyond the face value of
your event, opportunities should exist for your potential spon-
sor to cross-market with other event sponsors. This business-to-
business facet of the sponsorship deal provides added value.
6. States precisely what you are selling, the specific cost of entry, and the
expected return on investment—This may include a large, up-scale
targeted market, categorical exclusivity, signage, hospitality,
product sampling, and the ability to leverage sales. You need to
provide enough information for the proposal to be appropriately
evaluated and to sell the event internally to the company.
7. Calls for action and closes—You must be the aggressor and take
the lead on all follow-up unless directed otherwise by the
prospect. You must also strongly state why your opportunity
will be successful for them. If the prospect lives in another city,
arrange to meet whenever traveling in that area or at a mutually
attended conference/trade show.
8. Is a strong business document that could be three pages or less—
Consider your proposal to be viewed as junk mail. Therefore, it
is vital to provide managers information in a well-organized,
concise format. Do not make them search for the key points of
benefits, cost of entry, and why your opportunity is their best
choice. Have someone else proofread your material. For many
companies, key points are knowing the difference between, for
instance, two, too, and to. In addition, names should be spelled
correctly. Also, check for obvious oversights; make sure, for
instance, that a proposal meant for Subaru doesn’t list Ford
Motor Company as the potential sponsor of the event.
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190 THE ULTIMATE GUIDE TO SPORTS MARKETING

9. Includes support material—Support materials includes fact sheets,


news clippings from previous years, market research, testimoni-
als, and specific items targeted to the prospect. This material
should further strengthen your proposal and can be included
as an appendix or in a folder attached to the proposal.

Timing is also crucial when you are writing and mailing out propos-
als. Find out the budget cycle of companies, and know when budget
decisions are made. Eighteen months is an ideal lead time. If you are
approaching a company within six months, consider offering the
company a discounted fee for the current year, with the stipulation
that they sign a long-term agreement at full price. For companies that
are cash poor, consider a barter or value-in-kind arrangement in
which goods or services (e.g., drinks, T-shirts, equipment, marketing)
are provided in exchange for sponsorship benefits.
Aside from mailing out proposals, the Internet can also be useful
in disseminating information about your event and associated spon-
sorship opportunities. Such announcements can be sent to target
audience Usenet newsgroups, incorporated into related Web sites,
and delivered over appropriate mailing lists and bulletin boards. For
example, an announcement about the 1995 St. Patrick’s Day United
States versus Ireland rugby match was sent to managers of various
rugby Internet sites. The announcement included information about
the various levels of sponsorship opportunities. As a result, the mar-
keting manager of Murphy’s Irish Stout got in touch with the event
director, and a title sponsorship deal was negotiated.

Step Four: Follow Up with the Company


Rarely will a sponsor call you, so be sure to mark on your calendar
when you are to follow up with the company. Typically, 10 to 14 days
after mailing the proposal is a good time. Frequently, you will not
reach a live person, so leave a brief voice mail introducing yourself
and the event and asking if they received the proposal and if they
have had a chance to review it. If you do not hear back, wait another
week and follow up with another call or fax. You might also try send-
ing an article that mentions or would be of interest to your contact
with a note that says “Thought you might be interested in this and
looking forward to discussing the XYZ proposal.”
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CHAPTER 9 FINANCING SPORTS EVENTS 191

When you do finally make contact, ask for an opportunity to meet


and make a presentation in person. Be sure that you bring ideas that
expand beyond the sponsorship proposal, and present them in a mul-
timedia format. If all goes well, a verbal agreement will be reached
with the next step being a formal contract. Refer to Figure 9-7 for
clauses to include in a contract, as well as Chapter 5.
One negotiating point is the length of the contract. A long-term
multiyear agreement reduces the annual labor of courting and re-
signing the sponsor, allows a sponsor to build equity in an event, and
provides both parties the opportunity to budget more precisely. For
start-up events, however, Ukman discourages long-term agreements
with locked-in fees. She says that the main problem to avoid here is
getting stuck if the event takes off. As a new property, you also want
to find sponsors who are interested in promoting the event for you.
Sometimes it is better to go with a sponsor such as Coca-Cola, who
will promote the event on truck backs and through co-op ads, than
someone who gives you more cash but no promotional commitment.
Sponsorship priorities may change as the event grows.
On the other hand, if after two months you receive no feedback,
it may be time to close the door. But don’t lock it. Believe it or not, that
contact is not dead yet! A database of all of your contacts from
throughout the years provides an excellent target for press releases
that highlight your successes. Previous contacts should be informed
every few months of new corporate partners, successful marketing
ventures, and upcoming events. This “build it and they will come”
approach is low-maintenance and relatively low-cost. It also builds
your credibility in the eyes of potential corporate partners by show-
ing them that your event or company is a viable marketing tool that
they can use to increase sales. Your message should be, “It worked for
this other company and it can work for you.”
Whenever possible, also extend an invitation to potential corpo-
rate sponsors to attend your event or another event that your organi-
zation produces. That is a great way for the corporation to sample
your event and witness firsthand the excitement and opportunities
available.
To be successful in sport event sponsorship, Ukman advises you
to first find a media and a supermarket sponsor; then you have the
guaranteed reach and trade commitment that make selling cash
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192 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 9-7

Sponsorship Agreement Checklist


The Parties
Who are the legal parties responsible for executing the agreement and how will
they be referred to throughout the agreement?
Category Description and Exclusivity
What specific product or service category is being purchased? Is it exclusive?
Will sponsor have approval over other sponsors or suppliers?
Performance Responsibilities
What specific tasks is each party to perform? Ambush marketing protection, sig-
nage, promoting/marketing the event, hospitality, competition schedule.
Date, Time
What is the date and time of the sport event(s) activities during which the par-
ties are liable for performance of their duties as specified in the agreement?
Location(s)
Where will the sport event take place and what is the official name and address
of this venue? Are there territorial restrictions to the sponsorship?
Financial
What are the financial responsibilities of each party?
Terms of Payment
When is payment due, what happens if payment is late, and is there a benefit
for early payment?
Risk Management
Who is responsible for insurance, bonds, permits, and other risk management
procedures? Who is to be named as additional insured? When must certificates
of insurance be received? What types of insurance are required and in what
amounts? Who indemnifies whom?
Trademark/Logo License
Under what circumstances and during what time period can a sponsor use the
event trademark logo?
Expiration Date
When does the sponsorship offer expire if it is not accepted?
Execution
Who are the official signers?
Date of Execution
When was the document jointly executed?

sponsorships much easier. Unfortunately, the first two anchor spon-


sors are always the most difficult to secure. As Jeff Ruday says,
“Securing and keeping sport event sponsors is a true challenge.
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CHAPTER 9 FINANCING SPORTS EVENTS 193

Corporate objectives change all the time, and no company absolutely


needs to spend money on sport events.”
Basically, your search for corporate partners is limited only by your
imagination. Yes, personal contacts are extremely valuable, but most of
us eventually run out of friends. And, although cold calling is frustrating
and time-consuming, according IEG Sponsorship Report, this approach
accounts for a surprising 77 percent of all sponsorship dollars. Like any
form of cold-call selling, plan on 100 calls netting 10 appointments, with
one of those 10 appointments turning into a new corporate partner.
Securing corporate partners means selling yourself and your
event. It means separating yourself from the 20, 30, or 40 proposals
and contacts that marketing managers may see every day. A good
exercise in formulating your proposal is to look at the reams of junk
mail you receive each week. What catches your eye? What motivates
you to open an envelope? What button needs to be pushed to make
you want to write in, call with your credit card, or order through e-
mail? These same principles can be applied to your proposal.

Step Five: Servicing Sponsors


Finally, the most important consideration to remember is that the eas-
iest way to recruit a sponsor is to re-sign an existing one. That
requires that you service your sponsors and treat them like your most
precious asset. Wine and dine and involve them in continuing deci-
sions related to your event. The more they feel as if they have a stake
in your event and the more benefits they receive, the more likely they
will continue to support your event.
Just having a company’s name associated with the sport event is
not enough. To maximize the sponsorship, it needs to be leveraged to
include sales, advertising, promotions, merchandising, hospitality,
and public relations. Your job is to assist the sponsor in getting the
most out of your event and to help them quantify that success.
Before a corporate sponsor can move fully ahead on its marketing
plan, it must receive guidelines and direction from the event organiz-
er. If the organizing committee continually changes its plans and
builds roadblocks, credibility will be lost and the potential for the cor-
porate sponsor’s future involvement will be minimal.
One extra touch that Melissa Minker, marketing manager for USA
Track and Field, provides sponsors is a marketing newsletter that
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194 THE ULTIMATE GUIDE TO SPORTS MARKETING

highlights each of the organization’s sponsors and their sponsorship


activities. This not only provides more visibility for the companies,
but it also opens the door to cross-promotional opportunities among
sponsors and improves communication. An example of a cross-
promotion is when Bank of America and Visa teamed up to offer a
special Olympic Visa credit card. Each time the Olympic credit card
holder used his or her card, the holder was eligible to participate in a
variety of Olympic promotions, including a free trip to the Games.
Other benefits Minker offers sponsors are to invite them onto the
track and to introduce them to the athletes or arrange for a signed
number bib or picture to be given to sponsors.
Event organizers should also work with the sponsor and the local
jurisdiction to prevent ambush marketing. Ambush marketing occurs
when companies engage in activities that make them appear like a
sponsor when in fact they paid no rights fees. The best defense is
often a good offense. Identify all areas that could be used for ambush
marketing and secure these areas. For example, make arrangements
with outdoor advertising companies or airport/metro authorities to
give first right to purchase advertising to event sponsors. Also make
sure the public knows who the “official” sponsors are through an
aggressive public relations plan, and encourage action against com-
panies that try to take advantage of the event.
A warning should also be made about keeping sponsors informed
yet at a distance, particularly in terms of budgets and production. On
more than one occasion, major sport event sponsors have taken com-
plete control of events, removing the entire promotional and event
organization or replacing the original promoter for a less expensive
one. In one instance, a large bottler “stole” an event from a major
charity—just another example of the competitive nature of the sport
event business.

CONTRACTING OUTSIDE AGENCIES


As an event organizer, you can chose to sell sponsorships in-house or
hire an outside sports marketing company. The pros for outsourcing
this responsibility are that the sport marketing agency provides the
expertise, corporate contacts, and workforce. In some cases, the
agency will pay your organization a guaranteed dollar amount, and
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CHAPTER 9 FINANCING SPORTS EVENTS 195

anything they sell over that amount will be their profit. Most agree-
ments, however, work on a commission basis in that the company
keeps 15 to 25 percent of the amount of the sponsorship sold. Care
should be taken, however, to make sure that the sports marketing
agency is not so busy with larger clients or has a conflict of interest
that causes your event to receive inadequate attention.
The greatest disadvantage of outsourcing sponsorship sales is loss
of control. Excellent communication and a detailed contract are
required between the marketing company and the event organization
to make sure both understand their roles and responsibilities. For
example, if an event employee identifies and secures a company that
wants to work directly with the event and not through the marketing
agency, how can this be handled in a manner that is agreeable to all
parties? Melissa Minker also suggests that the marketing agency pro-
vide a biweekly activity report outlining the companies being
approached and the status report of sponsorship sales.

NONSPONSORSHIP FUNDING SOURCES:


FOUNDATIONS AND FINANCIAL INSTITUTIONS
One of the easiest sources of funding to identify but extremely com-
petitive to receive are foundation grants. A foundation is a charitable
trust or other tax-exempt, tax-deductible organization whose purpose
is to distribute financial grants. The Foundation Center in Washington,
D.C., and similar organizations maintain extensive databases of foun-
dation tax forms. Through computer searches, a targeted list of poten-
tial sponsoring agencies based on key words (e.g., athletics, education)
can be identified. Pam Gerig, executive director of the Palm Beach
County Sports Commission, has been extremely successful in solicit-
ing grant money for grassroot sport programs in her community.
Many of these were funded through the tobacco settlement money.
Before approaching a foundation, make a telephone inquire about
the accuracy of the printed information that you have reviewed and
whether any of it has changed. You do not want to mistakenly pre-
pare your grant proposal only to discover the deadline has been
moved ahead two months. Simple mistakes of this kind can be avoid-
ed by making one telephone call. While calling, also ask if the foun-
dation has any formal guidelines or examples to follow.
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196 THE ULTIMATE GUIDE TO SPORTS MARKETING

An alternative source of financing is through banks. Typically,


however, such loans or lines of credit are as part of a sponsorship
agreement. Bank of America, for example, is a sponsor of the 2002
Olympic Games and has arranged for a line of credit for the organiz-
ing committee based on expected revenue. Depending on your lever-
age, you may be able to negotiate an interest-free loan to support the
organization while sponsorship funds are being solicited. Without a
direct relationship to a sport event sponsorship, banks are usually a
poor choice for start-up capital because of the risk involved. Unless
your sport event has a long and successful history of financial stabil-
ity, you will be asked to provide large amounts of collateral (fre-
quently equal to the loan amount) and pay a prime interest rate.
Recently, some government entities and venture capitalists have
been providing loans to sport commissions to bid on and host sport
events. (See Chapter 12.) If you do enter into a loan agreement with
either a bank or another investor, be sure to ask what type of loan it
is. For example, you could ask for a nonrecourse loan or nonreim-
bursable loan where you are responsible for paying back the loan
only if the event makes a profit. If no profit is made, then the loan
becomes forgivable. This kind of financing is usually made through
government entities, and the arrangements are negotiated in terms of
public security and emergency personnel. If the event makes money,
the city where the event takes place will usually expect to be paid for
these services. If the event does not make money, the city will write it
off as an overhead expense.

CONTROLLING COSTS
Another way to make money is not to spend it, and this is especially
true in sports events. There are numerous ways to minimize your
financial exposure through clever negotiations. First of all, each event
employee and volunteer must be a salesperson and find ways to
reduce costs through in-kind services and products. For instance,
why pay for trash cans if you can borrow or barter for them? The
same applies to refreshments, decorations, equipment, advertising,
transportation, and almost every other logistical aspect of an event.
(Refer to Figure 9-8.)
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CHAPTER 9 FINANCING SPORTS EVENTS 197

Figure 9-8

Barter Examples for Sport Events


Product/Service Supplier
• Waste management Recycling company
• Satellite parking shuttle bus Shopping mall/department store
• T-shirts Clothing/sport manufacturer
• Power generators Air/heating company
• Cones Department of Transportation
• Portable toilets Construction company
• Chairs and tables Religious institutions/schools
• Public-address system Radio station
• Transportation vehicles Car dealership
• Gasoline for vehicles Oil/energy company
• Printing Printer
• Food and beverage Grocery store/restaurant

FINAL WORDS OF ADVICE


Event sponsorship takes many forms; however, the basic process is
essentially the same. Ron Thomas, CEO of the Tennessee Walking
Horse National Celebration, has brought $5.2 million to his event.
Mr. Thomas states that “sponsorship principles are the same if you
are after $1,000 in sponsorship from a small-town drugstore or if you
are after $1 million from a major firm in their corporate board-
room....Certainly, however, the higher up the flagpole, the harder the
wind blows, so you better be prepared.”
Ultimately, the effectiveness of all these ideas is most dependent on
the appropriate demographic match between an event’s target market
and the company solicited; the direct and indirect benefits available to
the sponsor; and the manner in which the proposal is presented. The
written proposal should not only provide information about the scope
and nature of the event but also include spectator or participant demo-
graphics and the associated benefits. Such details, collected through
primary and secondary research, are necessary for a company to make
an informed decision and to sell the proposal internally.
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198 THE ULTIMATE GUIDE TO SPORTS MARKETING

As businesses become more fiscally conscious, one of the most


important concepts to remember is that companies sponsor sport
events to impact their bottom line—their profit margin. Through
sponsorship, companies are able to align themselves with a lifestyle,
or demographic group, that best suits their image. Sponsors of events
are able to establish a dialogue with consumers, rather than just
speaking at them as in traditional advertising. When approaching
potential sponsors, also remember that you will be competing with
many other forms of advertising and you will have to establish why
your proposal deserves consideration.

GAME HIGHLIGHTS
• Building a corporate sponsor base is a time-consuming process
that relies on your entrepreneurial sense for tracking future
trends, your ability to conduct meaningful research and obtain
the right information, and your ability to network and to present
your proposal in the most meaningful way to a potential sponsor.
• Focus on the benefits to the sponsor, not the needs of your
organization.
• Service the sponsor and involve them in as many activities as
possible.
• Conduct a post-event summary for each sponsor quantifying
their exposure and return on investment. In the outset, make
sure goals are measurable.
• Research foundation grants and confirm specifications before
writing or submitting the grant proposal.
• Saving money will ultimately make you money, so look for ways
to reduce costs.
Graham 10 10/5/01 1:30 PM Page 199

C
10
H A P T E R

LICENSING
AGREEMENTS AND
MERCHANDISING
Be everywhere, do everything, and never fail to
astonish the customer.
Macy’s motto

H OW DO YOU MAXIMIZE INCOME and exposure through


merchandising, and when and how do you implement
the licensing program?
Licensing is an arrangement whereby rights to use a
trademark, trade name, or copyrighted design on a product
or service are granted from the licensor (property rights-
holder) to a licensee (company interested in manufacturing
and selling licensed merchandise). The three P’s of licensing
are profit, promotion, and protection.
Depending on the popularity and uniqueness of your
event and the process in which the licensing program is
organized and marketed, licensed merchandise can be a
lucrative revenue source for your event. Within the first two
hours of announcing the three mascots for the 2002 Salt
199

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200 THE ULTIMATE GUIDE TO SPORTS MARKETING

Lake Olympic Games, $75,000 worth of merchandise was sold. The


1996 Atlanta Olympic Games generated a record $50 million in licens-
ing revenue, and Sydney achieved similar results. In 1999, the U.S.
Tennis Open attendees spent close to $7 million on merchandise,
while Wimbledon rings up close to $100 million in retail sales each
year; almost as much as the Super Bowl.
To protect your merchandise rights, however, all names, logos,
slogans, or graphics associated with your event must be copyrighted
or trademarked. Names and pictures of venues should also be regis-
tered. Applications for a copyright are made through the Library of
Congress and for a trademark through the U.S. Patent and Trademark
Office. Although some events elect to change their logo annually to
increase merchandise sales, the costs associated with such change
must also be considered, such as new event signage, artwork, and
fees associated with copyrights and trademarks.
Licensed merchandise range from traditional souvenirs, such as
T-shirts, hats, key chains, and mugs, to more unique products, includ-
ing furniture, jewelry, and linens. According to anthropologist Valene
Smith, T-shirts tend to be the most popular item because not only are
they functional, they allow the wearers to associate themselves with
an event, statement, or design that proclaims their values or shows
their allegiance.
Relatively inexpensive items such as posters and lapel pins can be
sold at a premium price if the design is considered fine art or a col-
lectible. Annual events often create limited-edition posters frequently
designed by a famous local artist. These posters can be framed and
will serve not only as a decorative item but as a conversation piece.

THE LICENSING PROCESS


One of the first decisions an event producer needs to make concern-
ing licensed merchandise is whether to manage the licensing program
in-house, to grant/sell these rights to a corporate sponsor, or to hire
an external organization to coordinate the effort. Whoever ends up
with the job will be responsible for the following:
• Development of the license application, design handbook, and
marketing plan
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CHAPTER 10 LICENSING AGREEMENTS AND MERCHANDISING 201

• Distribution and collection of license applications


• Review and selection of licensees
• Collection of minimum guarantees or bank guarantees
• Development and dissemination of approval process guidelines
• Review of all products and promotions for quality and appropri-
ateness
• Accounting for all sales and royalties
• Protection against counterfeit merchandise
The number of licensees depends on the exclusivity of the license cat-
egory. This decision is usually influenced by the philosophy of the
management and market size, as previously discussed in Chapter 5.
Applications are scrutinized in terms of the company’s product, rep-
utation and knowledge of the retail business, financial status, and dis-
tribution channels.
Based on the experience of one licensee who is involved in many
different sport events, the key ingredient in a licensing program is to
hire knowledgeable people. If you are going to handle licensing in-
house, this means that you need to pay to attract the best talent. If you
decide to contract out this part of the event, be sure to hire a compa-
ny experienced in sport event licensing. It is also vital to listen to the
advice offered by your licensees, as they are in the business of selling
product year-round. Mattel, Inc., for example, steered the Salt Lake
City Olympic Organizing Committee away from a moose as the mas-
cot toward a bear because the moose had too may sharp angles. Based
on the toy company’s experience, rounded curves are more attractive
to consumers.

VENDING LOCATIONS, DESIGN, AND OPERATIONS


Location is critical when selling merchandise at sport events.
Whenever possible, try to position your merchandise stand or kiosk
in the path of the spectators. Look at crowd flow as an indicator of
where to position permanent or temporary selling areas. Whenever
possible, set up your displays so that the arriving public will see
active buyers purchasing merchandise. Consumers tend to follow
crowds. Also keep in mind the need to restock your inventory and the
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202 THE ULTIMATE GUIDE TO SPORTS MARKETING

proximity of the location to the inventory. After all, you can’t sell
what is not on the shelf.
Design your kiosks or stands with raised displays that can be eas-
ily seen over the heads of standing crowds. Research shows that light-
ed signs and three-dimensional displays are more effective in
attracting consumers. Colors also play an important role in attracting
customer response. Red and white attracts customers at close range,
while black and yellow is more visible from a distance. The kiosk
should be designed to stop traffic en route to rest rooms, concession
stands, or exits.
Many venues allow a menu of merchandise items to be placed in
each seat, particularly in the club or reserved level and in the luxury
boxes or suites. From this menu, spectators can place an order with the
roaming vendor and pay for it with a credit card. The items are then
delivered to the customer’s seat, eliminating the need to stand in line.
When ordering inventory and stocking kiosks, remember that
large T-shirts are the most popular size, so be sure to have plenty on-
site. In addition, larger, bulkier items tend to be purchased toward the
end of the event. Also note that the busiest times for merchandise
sales are during the arrival as well as departure. Make sure you have
peak staffing during these critical times.
For larger events, companies such as FMI and SES can also be
hired to select the line of merchandise and orchestrate the delivery,
warehousing, distribution, and protection of licensed merchandise. In
addition, a separate concessionaire company may be hired to set up,
staff, and stock selling areas. According to licensees, the major prob-
lem with this is that the organizing committee tends to charge the con-
cessionaire a royalty fee in addition to the licensee royalty that makes
the cost of the product sold to spectators too high. A $12.99 Olympic
Barbie sold in Toys R Us was turned into a $35 souvenir at the venue.

MARKETING LICENSED MERCHANDISE AND GUARANTEES


Before licensees make any guarantees, they should inquire about the
marketing effort of the organizing committee to promote the event and
its merchandise. In the case of the 1996 Atlanta Summer Olympic
Games, a number of promises were made in terms of marketing the
mascot “Izzy” to the world through a television cartoon show and
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CHAPTER 10 LICENSING AGREEMENTS AND MERCHANDISING 203

other activities, none of which transpired. In fact, Izzy was hardly visi-
ble before, during, or after the Games. This misrepresentation allowed
some licensees to renegotiate their final guarantees with the organizing
committee, since merchandise sales did not go as well as expected.
Event organizers should approach local merchants to sell and dis-
play event merchandise in store windows. Sponsors should also be
asked to assist in marketing licensed products. JCPenney, for exam-
ple, a sponsor of the United States Olympic Committee, created an
Olympic merchandise section within each store.
For licensees, it is also important to look at possible threats such
as a player lockout or boycott that could influence merchandise sales.
Such clauses may be included in the licensing contract. The NBA
player’s lockout, for example, hurt many of the NBA and WNBA
licensees.
Another decision that licensees need to make regarding market-
ing is which marks will be more appealing. For the Olympic Games,
will the Game marks (e.g., the Salt Lake Olympic logo) sell more or
will the marks of the national team (e.g., the United States Olympic
Team)? For some products it is possible to combine both marks,
whereas the packaging incorporates the Games marks and the actual
product has the team logo.
Douglas Frechtling, associate professor of tourism studies at The
George Washington University, suggests that every product be test-
marketed carefully to determine consumer likes and dislikes, to set
appropriate pricing, to fine-tune sales techniques, and to develop
ideas for further product development.

TRAINING YOUR SALES TEAM


When Joe Jeff Goldblatt was retained by the Sells Floto concession
company (a division of Ringling Bros. and Barnum & Bailey Circus)
to train the concession sales personnel who travel with the circus, the
first thing he did was assess the skill and language level of the group
and determined that they were primarily profit-driven. He asked the
group, “When someone orders popcorn or cotton candy, how do you
respond?” He asked them to demonstrate a typical example of selling
these products in the stands and watched as one of the salespeople
raised his index finger and another galloped up 30 steps to fill this
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204 THE ULTIMATE GUIDE TO SPORTS MARKETING

single order. “Tonight when someone signals that they want to buy, I
want you to stop, shout ‘How many?,’ and wait for them to respond.”
The salespeople looked at him quizzically, but he now had their full
attention. “The customer will most likely hold up two or more fin-
gers. Whatever the number he displays, you are to shout it at the top
of your lungs and then go into the stands to fill the order,” Goldblatt
continued. He then demonstrated this procedure several times, using
members of the audience as buyers. “The goal is multiple sales with
less time and effort per sale. Each time I catch you doing this tonight
and it results in a sale, I will reward you with an extra dollar. I’ll be
watching.” In less than 30 minutes, he had taught them a simple skill
that would increase the sales that evening by an amazing 43 percent.

SELLING MERCHANDISE AT SMALLER EVENTS


For many events, there will not be a great demand for licensed mer-
chandise beyond the athletes participating in the event and their fam-
ily and friends. In this case, it would be more appropriate to either
handle the process in-house or to sell the rights to an event sponsor,
usually the sportswear category sponsor, such as Nike, Adidas, Fila,
or Reebok. The benefit of controlling the merchandise sales is obvi-
ously more profit, but the advantage of selling the rights is a guaran-
teed revenue stream and fewer headaches.
The steps to handling merchandising in-house are to design the
logo; decide on the type, quality, and quantity of merchandise; order the
merchandise from a local merchant; and set up selling areas in the reg-
istration area during team check-in, near the front entrance of the event,
and near the playing area during the event. Be sure to have enough cash
boxes with a minimum of $50 in small denominations in each.
Designate one or two responsible people to collect the money, and
schedule volunteers or staff to work the booth according to peak times.
Don’t forget to post signs directing people to the merchandise area.
A number of events also organize a trade show or health exposi-
tion that concurs with the sport event. This is another revenue gener-
ator, as booths are sold for $100 to $5,000, depending on the length of
the event and amount of traffic generated to the show. Most major
road races incorporate trade shows that draw a variety of exhibitors,
from fitness-related companies to financial institutions and insurance
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CHAPTER 10 LICENSING AGREEMENTS AND MERCHANDISING 205

companies all seeking the business of the target audience. The next
chapter presents additional ideas that are involved in organizing
sport events.

GAME HIGHLIGHTS
• Determine if a licensing program is appropriate for your event
and if it should be outsourced or handled internally.
• Incorporate sales training in your strategy.
• Always seek multiple sales.
• Test-market the product to determine the projected level of sales.
• Select the location to sell the product based on traffic flow, visi-
bility, and ability to restock quickly.
• Listen to the advice of your licensees.
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C
11
H A P T E R

THE INS AND OUTS


OF SPORT EVENTS
I find baseball fascinating. It strikes me as a Native
American ballet—a totally different dance form.
Nearly every move in baseball—the windup, the
pitch, the motion of the infielders—is different from
other games. Next to a triple play, baseball’s double
play is the most exciting and graceful thing in
sports.
Alistair Cooke, journalist and broadcaster

W HAT SPECIAL TOOLS and skills do you need and how do


you apply them to produce successful sport events?
“The success of any event is in the details as well as the
flexibility to react to inevitable problems,” exclaims Emilio
Pozzi, managing director of events for the United States
Soccer Federation. It also depends on the event manager’s
experience and confidence in what he or she is doing. In
Chapter 3 general logistical requirements were described for
all sport events. In this chapter, additional sport-specific con-
siderations are provided to offer a deeper understanding of
the requirements needed to organize a successful sport

207

Copyright 2001 The McGraw-Hill Companies, Inc. Click Here for Terms of Use.
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208 THE ULTIMATE GUIDE TO SPORTS MARKETING

event. Keep in mind that many of the logistics presented apply to other
sports with similar needs (i.e., timing, registrations, and first aid).

CYCLING
The most common cycling event is the long-distance road race, with
the most popular being the Tour de France. Crossing great distances
creates logistical challenges far greater than those of a sport event per-
formed in a stationary venue do. When asked what the most difficult
logistical aspect of cycling races, Jim Birrell, vice president of
Operations for the Goodwill Games, quickly answered, “The two-
way communication system. Walkie-talkies or cellular phones are
fine until your cyclists and management team is on two sides of a
mountain. To combat such geographical elements, a fixed-wing air-
plane carrying three repeaters is hired to fly above the event, allow-
ing signals to be transmitted over the mountain.” Another technical
device used to help position both the television helicopter and the
fixed-wing plane is the global positioning satellite (GPS). Since planes
can normally only fly four hours and the event lasts six, at some time
the plane must land and refuel. Once back in the air, pilots can imme-
diately locate the cyclist by calling up GPS geographical coordinates.
Birrell says, “Without a GPS, it takes pilots a long time to relocate the
cyclists, wasting both time and money. Remember, from 2,000 feet in
the air, it isn’t easy finding a pack of cyclists in a forest.
Another logistical challenge of the cycling tours is that they cross
numerous police jurisdictions, each with its own political bureaucra-
cy. Birrell says that the best way to handle this is to “begin at the state
level, followed by the county, then the city. This is especially impor-
tant when traveling on state highways.”
Cycling and running events share similar logistical considerations
such as numbers, rest areas, and timing systems.

RUNNING RACES
More than 12,000 road races take place each year, and each one
requires an organization to make it successful and profitable. A num-
ber of logistical considerations will help you to produce a successful
and profitable race.
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CHAPTER 11 THE INS AND OUTS OF SPORT EVENTS 209

Considerations for Races


1. Race application and permits—To become a sanctioned event,
organizers need to complete an application form available from
the local association of the national sport governing body, which
in the case of road races is USA Track and Field (USATF). The
cost of sanctioning depends on the number of racers, ranging
from $30 to $5,000. The benefits of sanctioning an event include
comprehensive general liability insurance, the opportunity for
USATF course certification (necessary if performances are to
count toward records and for national and international team
qualifications), listing in association newsletters and on Web
sites, and the right to use the USATF name and marks on event
collateral. At this time, proper paperwork should be submitted
for what is usually called a “proposal for a parade permit,” or
permission to use the streets or parks on which your race will
take place. This should be performed at least six months prior to
the race date.
2. Budget—Obviously, the budget of a road race varies with the
number of entrants, the length of the race, and the diversity of
the course. “But,” said Jim Vandak of 10K/Sport Productions in
Arlington, Virginia, “there will always be some fixed costs if you
have 500 people or 5,000.” Both Vandak and Susan Kalish, head
of the American Running Association in Bethesda, Maryland,
said the most expensive element is the purchase of the T-shirts.
The cost of contracting someone to organize the finish line is
next. A typical 10K race costs between $8,000 to $15,000 to pro-
duce. In some cities, however, fees are charged for police sup-
port that can run $10,000 to $18,000 for 30 to 40 police. In
addition, if the new chip system is used for timing races, this
could increase costs another $2 to $10 per racer, especially if rac-
ers do not return their chips to the race organizer.
According to Vandak, “In general, sponsorship revenue
determines the profitability of smaller races. Take the time to
develop your event sponsorship and sponsor relationships. A
well-organized race that offers sponsors good value will pro-
duce a successful race and a successful bottom line.” Kalish fur-
ther explains that for this type of sport event, “your best bet for
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210 THE ULTIMATE GUIDE TO SPORTS MARKETING

sponsors today are not the big companies but the small local
businesses that are interested in promoting their name.” Mom-
and-pop businesses are great for prizes, while banks and insur-
ance companies are by far the most prevalent race supporters
looking to capture the upscale runners market.
3. Promotions—To receive “more bang for your buck,” develop a
Web site, place advertisements in newsletters and magazines in
the local community, distribute brochures at other road races, and
make sure your race is listed in running publication calendars and
on event-related Internet sites. The race should be promoted to a
targeted audience with ample time for runners to train.
4. Race equipment—To set up the race, you need equipment includ-
ing measuring devices, numbers, pins, time sheets, surveyor’s
chalk to line the course, stopwatches, finish-line clock, flags,
banners, scaffolding, ladders, tools, computer and printer, result
board, awards, megaphone or public-address system, water, ice,
cups, and some form of shade (trees, awnings, umbrellas).
National magazines, such as Running Times and Runner’s World,
set up promotions in which they supply race organizers with
numbers, pins, and “goody bags” in exchange for the distribu-
tion of discount subscription order forms to participants by the
event organizer.
5. Course monitors—You must have volunteers or staff serving as
monitors on the course to direct runners, watch for cars, and
manage water stations. These individuals should wear bright
colors and be briefed extensively about the course and responsi-
bilities (e.g., have water in cups lined up on tables ready to dis-
tribute to runners and assign people to resupply the cups).
Monitors should also be stationed where a crowd is expected to
form in order to restrain the crowd from surging forward and
interfering with the runners. A police escort is suggested for the
first-place runner. Use the media to notify the public about roads
that will be closed to avoid traffic problems.
6. Medical attention and transport—Every race must have a medical
unit available. Although racers complete a wavier freeing race
directors from prosecution for injuries, event organizers still
have an unspoken responsibility to equip the race to handle run-
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CHAPTER 11 THE INS AND OUTS OF SPORT EVENTS 211

ning injuries and emergencies. Many races actually assign a race


medical director to be responsible for assisting in the choice of
the day, start time, evaluation of the course for potential haz-
ards, and selection of the location for refreshments, shade, and
medical stations.
7. Course measurement—The worst way to measure a course is by
using an automobile odometer. Many race associations will not
accept race proposals that have measured the course this way.
The best way to measure a course is with a Jones counter that is
attached to the front wheel of a bicycle. This system is author-
ized by USATF to certify courses. Race organizers can also select
to use an existing certified course.
8. Brochure/entry form—Brochures and forms should provide to the
runner the following important information about the race:
• Race name
• Sponsors
• Time and date
• Location
• Cost
• Awards
• T-shirt information
• Entry form
• Mailing address
• Liability waiver
• Brief history
• Course map and distance
9. Registration—An average race currently costs between $5 and
$30 to enter. Fun-run courses are usually measured by odome-
ters and rarely offer any awards or T-shirts. The registration fees
for these events are therefore at the low end, and races are usual-
ly organized for the social aspect of racing. Many clubs organize
fun-runs to solicit new members. The larger the expected race,
the more you should charge for the entrance fee.
Decide whether to allow race-day registration or preregistra-
tion only. Runners registering on the race day are often charged
an additional $5 to $10. Those who register prior to the race
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212 THE ULTIMATE GUIDE TO SPORTS MARKETING

usually receive a break on the fee and have the luxury of picking
up their “race packet” a day or two before the race.
Sponsors of fund-raising events, such as the National
Multiple Sclerosis Society, require entrants to collect pledges for
eligibility, usually a minimum of $25.
10. Race packet—The race packet contains a course map, the entrant’s
race number, safety pins for the entrant’s number, sponsor infor-
mation and/or giveaways or coupons, and other information
such as medical services, the awards ceremony, and so forth.
11. Split times—Larger races have mile-marker signs 10 feet high so
that the runners can see the mile they are approaching. Other
races simply mark the mile on the road with paint. Either way,
the runner knows he or she is approaching a mile marker when
you hear a volunteer, ideally dressed in common volunteer attire
or a specific color, yelling out split times.
12. Finish line—Make the finish line noticeable by using flags, bal-
loons, sponsor banners, race name banners, and cones. You must
decide whether you want all finishers to cross into the same fin-
ish line chute or whether to separate the male finishers from the
female finishers.
Recording runners’ times is another aspect of the finish line.
At smaller races, two people complete this procedure. The caller,
using a stopwatch, calls the time of each person as he or she
crosses the line, while the second person records the time. We
suggest that you create a time sheet with preprinted numbers
and times so the recorder has to only circle the times as they are
being called. Most large races, however, have automated this
procedure. A small handheld device about the size of a large cal-
culator can be purchased or rented. You push a button on it each
time a runner crosses the finish line, and the time is recorded
and later printed out on a small sheet of paper. Even more
sophisticated is the chip system in which runners wear a chip on
their shoe, and as they cross rubberized mats (antennas embed-
ded), the system captures runner data. Whatever the system,
however, always have a backup.
The next responsibility is placing the finishers. At small
races, an index card with the place written on it is given to each
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CHAPTER 11 THE INS AND OUTS OF SPORT EVENTS 213

finisher. After the runners have caught their breath, they walk to
a table and complete the card with pertinent information. The
cards are then combined with the information received by the
timers in order to match places and names with the correspon-
ding times. Another option is to purchase the numbers that
come with a tear-off tab. Organizers apply the runner’s informa-
tion on this tab as each runner crosses the finish line. The tab is
then torn off and placed in order of finish. This obviously expe-
dites the greatly anticipated posting of results. With the chip,
results are computerized, greatly reducing the required work-
force and alleviating human error.
13. Cleanup—One of the least favorite yet inescapable aspects of a
sporting event is cleanup. This is becoming even more important
with the emphasis on environmentally friendly events. Jim
Vandak shares a valuable lesson on how to deal with the ardu-
ous task:

With over 11,000 runners completing the Army Ten


Miler, lots of trash is produced. My first year working
on the event, we ordered two big Dumpsters, thinking
that this would be sufficient. It turned out that the
Dumpsters were not so big, especially when we start-
ed filling them with trash and cardboard boxes. Also,
our event site was spread out, so we were hauling
trash in and on top of any vehicles we could find, mak-
ing legions of road trips to the Dumpster. The next
year, I spent $250 on disposable trash containers and
$600 for a rear-load, compactor truck to drive around
and pick up trash. It was the best $850 I ever spent.
Plus, I imprinted event and sponsor logos on the trash
containers and packaged them as collateral advertis-
ing in sponsorship packages.

Changing Demographics
Road races are no longer just for the young and fit. The age of those
involved with road racing is increasing, with 30 percent or more of
the entrants over 40 years old. Races are also more popular among
females and families. In 1999, 38 percent of finishers were females,
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214 THE ULTIMATE GUIDE TO SPORTS MARKETING

compared to 20 percent in 1985, and many races are also now includ-
ing a children’s event.
Organizing a road race, even one that expects only 200 runners,
demands strict preparation and delegation of resources. Manage
these tasks by breaking them down into committees. Even for small-
er races, this relieves some of the burden placed on the race director,
who is busy overseeing the entire race. The Road Runner Club of
America publishes a very comprehensive handbook for club and race
administrators that covers every event detail and even outlines budg-
et items for a major road race.

GOLF TOURNAMENTS AND OUTINGS


Golf events include corporate outings, celebrity and pro-am tourna-
ments, fund-raising tournaments, and professional tournaments. The
corporate outing is probably the most prevalent type of golf event and
can range from a small group of corporate executives getting togeth-
er on a specific day to play golf to a major corporate tournament
involving suppliers, clients, employees, and corporate executives.
The success of corporate golf outings relates to the amount of busi-
ness that is conducted on the course. Where else can you spend four
to six hours in conversation with someone over things in common
and, of course, business opportunities?
Celebrity and pro-am tournaments match celebrities and professional
athletes, respectively, with participants who have paid $500 to $5,000 to
play in the tournament. Celebrity tournaments are typically designed
around a popular celebrity who can bring in equally celebrated friends
to attract sponsors who want to share in the limelight and glitz. Pro-
ams are typically scheduled early in the week of professional tourna-
ments. Both types of golf outings usually benefit a charity.
Fund-raising tournaments tend to take the name of the major spon-
sor or are presented by a corporation, such as the Junior Achievement
Golf Classic sponsored by 3M. This type of golf outing is designed to
be supported by members and friends of the organization or cause
hosting the event.
Professional tournaments are the most exciting spectator golf tour-
nament. This consists of the top professional golfers in the world who
qualify to play for a predetermined money purse. Although there are
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CHAPTER 11 THE INS AND OUTS OF SPORT EVENTS 215

different levels of tournaments that offer many prizes, the most pop-
ular are the PGA (Professional Golf Association), the Senior PGA, and
the LPGA (Ladies Professional Golf Association). These tournaments
are sponsored by corporations and play in preannounced cities
throughout the country.

Organizing Golf Tournaments


Before planning any golf tournament, you need to identify the level of
players who will be participating. Other data vital in the early stages
are the number of people expected to play and the reason for the golf
event (e.g., fund-raising, sales staff incentive, relationship building,
corporate anniversary), along with the intensity of the event—com-
petitive, friendly, or educational. The level of players and tournament
purpose will affect your decision about what type of tournament to
have, as well as the course to use. If you are looking to impress guests,
an exclusive country club would be appropriate, but if you are more
interested in making money, a public course or private course out of
town may be your best choice. Remember, however, the more exclu-
sive the course, the higher the tournament fees. If your players are
mixed-level, select a course that is challenging but not too difficult.
Player information also helps determine the format of the tourna-
ment. The “shotgun start” is an excellent way to get everyone in the
tournament energized. In the past, the golf pro would fire a shotgun—
hence the name—to start the play. The teams arrive simultaneously,
have refreshments, start their cart engines and drive to a preassigned
individual tee, and tee off simultaneously at an agreed upon time.
For a team event, a “scramble format” (aka captain’s choice)
enables the different levels of players to participate regardless of abil-
ity. Every person in the group tees off, and then the ball closest to the
hole is selected and played by the entire group until the hole is fin-
ished. The scramble is also the fastest tournament play. If you have
more competitive participants, consider a “best ball” format in which
each person plays his or her own ball, but only the lowest team score
is recorded per hole. This lets those individuals keep track of their
own scores, if desired, as if playing straight medal play.
Typically, the registration fee of a golf tournament is based on the
price of the greens fees and cart. These could be as low as $45 or as
high as $250 a head. On top of this you need to consider food and bev-
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216 THE ULTIMATE GUIDE TO SPORTS MARKETING

erage costs. Most tournaments provide a light breakfast or lunch


before play, beverages and snacks during the tournament, and an
awards lunch or dinner following the tournament.
As far as revenues, the two main sources are registration fees and
sponsorships. The cost of a foursome generally costs more than four
single players, as there is a premium added for the right to group four
specific players. Sponsorships include title, presenting, as well as hole
and contest sponsors (e.g., hole-in-one, closest to the hole, longest
drive). Silent auctions are also often organized in conjunction with
golf tournaments and serve as an excellent fund-raiser. Auction items
are displayed and bids are placed while participants are waiting to
tee off and/or upon their return to the clubhouse. The winners are
then announced at the closing award lunch or dinner. Silent auctions
can raise thousands of dollars, depending on the number and type of
auction items. The NFL Players Association raises close to $6,000
through a silent auction offering 35 items for only one hour before the
“Unsung Heroes” awards banquet.
Auction items are not as difficult to obtain as you may think; all it
takes is a letter of request. The letter should clearly state the type of
item requested, the purpose of the request, when the item needs to be
received, and where it should be mailed or delivered. To increase
silent auction revenues, promote the auction before the event by
sending out a list of the auction items with tickets or other marketing
material, arrange the flow of the event so that participants must pass
through the action and so that the items and accompanying bid sheets
are visible and easily reachable, include a minimum bid for each item,
and finally, allow time for the bidding to increase. Serving alcohol
also seems to inflate bids!
For golf event planners, the golf professional at your selected
course serves as a good point of reference. Most courses have a full-
time outings coordinator on staff marketing special event packages
and assisting with tournaments. There are also a number of compa-
nies such as Advantage Golf that consult with groups interested in
hosting a golf tournament and Golf Group International that will
organize the tournament for you. The benefit of outsourcing is that
companies that specialize in producing golf tournaments have the
experience to make the event a success and can often get a volume
discount on signs, insured contests, gifts, T-shirts, and awards that
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CHAPTER 11 THE INS AND OUTS OF SPORT EVENTS 217

are passed on to the client. A basic tournament management fee


ranges from $3,000 to $5,000. The first question any consultant should
ask is “What are the goals and objectives of the tournament?”
Planning should begin at least six months prior to the golf event
to be sure you get the date, times, and service you require. Following
are some of the details involved in organizing a golf tournament:
• Marketing the tournament
• Designing and ordering signage and gifts
• Setting up scorecards
• Arranging the pairings based on average scores or handicaps
• Assigning tee times
• Making sure people get to their tees on time
• Posting winners at the end of the tournament
• Orchestrating hole contests and obtaining prizes
• Arranging transportation
• Preparing the award ceremonies or banquet
• Coordinating a silent auction in conjunction with the tourna-
ment to raise additional funds
Most golf tournaments are planned through a tournament committee.
The golf tournament organization chart shown in Figure 11-1 is also
adaptable to other sport events.
All facilities used by the athletic competitors should be assigned
to one person to ensure compliance with competition standards as
well as to provide security and safety for the athletes. Supervision of
auxiliary facilities such as hospitality tents or merchandise and con-
cession kiosks should be assigned to appropriate committee repre-
sentatives.
The checklist in Figure 11-2 will help stimulate your thinking
about the abundant possibilities available to you and your team to
organize a successful golf event. Despite your best-laid plans, how-
ever, you have no control over what Mother Nature has in store.
Figure 11-3 offers ideas for what to do during inclement weather.
Finally, when planning golf tournaments don’t forget the impor-
tance of involving women golfers. The National Golf Foundation
reports that women account for 19 percent of all golfers and 36 per-
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218 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 11-1 Golf Tournament Organization Chart

Tournament Director Chairman

Assistant Director Development Director

Committee Vice Chairs or Managers

Registration Refreshments Merchandise

First Aid Financial Celebrities

Corporate Hospitality Marketing Media

Public Relations Equipment Insurance Prizes

Gifts Groundskeeping Facilities Transportation

Accommodations Entertainment Scoring

cent of all beginning golfers. There are currently over 5 million


women golfers in the United States. Part of this planning is to include
gifts and prizes appropriate for women.

3-ON-3 = 7 TIMES THE FUN


One of the most popular basketball events today is the 3-on-3 tour-
nament (see Figure 11-4). As described by Tom Swanson of the
Championship Group, a sports marketing firm based in Atlanta,
Georgia, “3-on-3 basketball is a weekend street fair, a block party, an
event born in the neighborhood, a family event, a media event, a char-
itable fund-raiser, and a unique promotional opportunity.”
Companies not only sponsor one-day tournaments but a series across
the United States and Europe. Hoop-It-Up, the official national 3-on-
3 basketball tour of the NBA, is held in 44 cities across the United
States as well as in Europe and culminates in two 1-hour televised
Hoop-It-Up events. The largest of these tournaments is held in Dallas,
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CHAPTER 11 THE INS AND OUTS OF SPORT EVENTS 219

Figure 11-2

Tournament “Hole-in-One” Ideas


• Select a golf chairperson who is interested in and knowledgeable about the
game.
• Include with the invitation or registration form a golf participant survey that
requests the participant’s average score or handicap, rental equipment needs
(shoe size if applicable), and the number of spouses of partners playing.
• Determine the number of attendees not participating in the tournament. This
will help you plan alternative programs such as instructional clinics, putting
tournaments, and tourist or shopping excursions.
• Remind players to clearly mark and identify all equipment and shoes before
arriving at the course.
• Design and order personalized merchandise early.
• Decide what number of prizes will be needed (e.g., twosomes or foursomes),
and the categories of winners (e.g., lowest score, highest score).
• Avoid changes in handicap and last-minute changes in pairings.
• Meet with the golf operations coordinator to finalize all scheduling, group
requirements, and special needs, including celebrity players. Provide a list of
the pairings and rental needs at least one day before the tournament.
• Ask about tipping and gratuity policies at the course.
• Assign check-in people to greet players as they arrive to drop off their golf
bags. Greeters should ask the players’ names, inform them of the hole
number at which they will start and tag their bags with this number, and
place the bags on the corresponding cart. A receipt showing this hole number
is a helpful reminder to golfers.
• Assign a parking attendant to direct all tournament traffic.
• Assign an individual or several individuals to pick up VIPs on tournament
day to ensure schedule is maintained properly.
• Publicize the availability of lockers, locker room facilities, and showers.
• Use beverage cart sponsors to provide refreshments to players on the greens.
• Hole sponsors can offer prizes for the best score at each hole.
• Sponsors can offer special prizes for contests such as closest to the hole,
longest drive, accurate drive, and so forth.
• The “hole-in-one contest” is a great idea to generate excitement and lots of
free advance publicity. Try to get someone to donate a vacation trip or even a
new automobile as the prize for this contest. To build excitement, park the
automobile near the hole.
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220 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 11-3

Making Sunshine on Rainy Days


• In case of inclement weather, be prepared to offer your golfers a suitable
substitute that will at least provide entertainment until the weather clears.
• Ask the course golf pro to be prepared to offer a demonstration trick shot
clinic or a special educational session. A surer bet is to bring to the event
your own golf pro, who can be ready to provide assistance on the course or
in the clubhouse.
• Provide waterproof clothing, golf umbrellas, and golf club covering for your
guests who might like to continue playing in the rain.
• Ask audiovisual personnel to set up a television and video machine so that
you can show instructional video tapes or championship footage while
golfers wait for the weather to improve.
• Research and secure cancellation insurance in your contracts. You also might
consider a rain date.

and in 2000, it attracted 6,800 participants. The tour is run by


Streetball Partners International, a grassroots event company that
also organizes the NHL Break-out tour (5-on-5 hockey), MLB Yard
Ball (4-on-4 plastic bat and ball), Toyota Golf Skills Challenge, and Let
It Fly (4-on-4 flag football).

ALTERNATIVE OR ACTION SPORTS


What once was referred to as extreme sports, now dubbed alternative
or action sports, is one of the fastest growing yet least-tested area of
sport event management and marketing. The first lesson shared by
those who have ventured into this new field is to listen and respect
the athletes. Once an extreme athlete herself, Bonnie Crail, partner of
Disson Furst and Partners and On Board Entertainment, strongly sug-
gests involving the most influential athletes in your planning. “The
paradigms that work in other sports don’t work in alternative sports.
Disciplines are so fluid and what is considered cool or uncool or too
commercial or exploitative of athletes can dramatically affect the rep-
utation of the event and sponsors.” Jim Downs, director of Sports &
Competition for the XGames and now general manager for the Great
Outdoor Games, concurs with Crail that the learning curve for event
mangers working in action sports is extremely high and it is impera-
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CHAPTER 11 THE INS AND OUTS OF SPORT EVENTS 221

Figure 11-4

3-on-3 Basketball Tournament Checklist


____ Site selection
____ Permits
____ Advertise through leagues in the area
____ Registration
____ Sponsors
____ Volunteers
____ Game officials
____ Insurance
____ Medical, first aid
____ Equipment (e.g., backboards, balls, scoreboards, whistles)
____ Awards
____ Booths for vendors
____ Food and beverage concessions
____ Sound equipment, staging

tive to work closely with the athletes. “These athletes do not accept
orders or negative responses easily. Providing explanations regarding
requests and decisions have more favorable results.” It is not the same
as in older sports where sports federations more influential. Event
organizers must go to the athletes first, or they will be seen as suffer-
ing from arrogance.
Aside from the unique human dynamics involved, action sports
require additional safety precautions and logistical challenges. For
the X Games’ street luge competition, 5,000 to 6,000 bails of hay must
be strategically placed to protect athletes as well as spectators. Half
pipes and other venues need to be constructed and thoroughly inves-
tigated for raised screws, splinters, and other loose ends. Be fore-
warned: Don’t ever try to hire a construction company with no
experience—the athletes will laugh you out of town. And don’t for-
get, snow for the snowboard jump needs to remain frozen in 100-
degree weather and the FAA needs to clear airspace for sky surfing.
These are but a few of the unique challenges facing action sports
event managers. In the words of Crail, “To be successful in this area
of sport, you need to reinvent the wheel. The audience demands
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222 THE ULTIMATE GUIDE TO SPORTS MARKETING

innovation and will not settle for the same show week after week.” A
snowboarding event today looks dramatically different than last year,
so if you try to copy what you saw last year, it would be a waste of
time and money. The best place to seek advice and to stay abreast of
hot athletes and new trends in action sports are the specialty maga-
zines. Successful producers of action sports also try to blend music
and entertainment into the events.

ULTRA SPORT EVENTS


For organizers of long-distance events such as AIDS Ride 2000, a four-
day, 330-mile bike ride to benefit those with AIDS or HIV, there are
additional logistical requirements to consider. Because of an event’s
cause and the increase in modern medicine, organizers must be pre-
pared to deal with a variety of medical conditions. For example, heart
transplant recipients, liver transplants recipients, double amputees,
HIV-positive participants, and people with AIDS who swallow pro-
tease inhibitors along with their Gatorade at pit stops may participate
in your event.
For both the strong and weak, rest stops need to be set up every
15 to 20 miles where participants can replenish themselves with nutri-
tion bars and orange slices, smear on sunblock, and seek out medicine
and massages. Ice baths and water sprays are also popular.
Staffing of the medical tent for the AIDS ride consisted of a corps
of volunteers: 5 physicians, a physician’s assistant, 2 nurse practition-
ers, 45 registered nurses, 6 physical therapists, and a smattering of
paramedics. This corps turned vans into rolling medicine cabinets.
Plans for those far behind also need to be made. Typically, partic-
ipants still on the road at 7 p.m. are asked to ride the rest of the way
in a support vehicle. It’s known as “sagging,” and for many events,
there is honor in it!

MULTICITY SPORT EVENTS


For sport events that travel to various cities across the United States
such as Toyota Golf Skills Challenge, Hoop-It-Up 3-on-3 Basketball,
and the Adidas Golden Spike Indoor Track and Field Tour, a number
of special logistical considerations must be arranged. To transport the
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CHAPTER 11 THE INS AND OUTS OF SPORT EVENTS 223

equipment and signage, trucks need to be purchased or leased and


drivers hired. Hiring a moving company is not always reliable or eco-
nomical warns Melissa Minker, marketing manager for USA Track
and Field. Plus, by hiring your own truck and driver you have on-site
storage and one more event hand to help off-load and set up the
equipment and signage. Care should be taken when producing event
signage so that durable yet light material is used. Dismantling and
packing heavy signs is extremely labor-intensive. If the events are
split between the East and West Coasts, it is wise to have two trucks
and drivers. Drivers are typically paid a flat fee (half paid in advance
and half paid upon completion of the tour) and provided a gas card.
To help promote and staff the events in each market, it is a good idea
to hire a local company if your organization does not already have an
office or affiliate in the area.
Now that you know what to expect in terms of hosting sport
events, it is time to learn about sports tourism, why this field is grow-
ing, and how you can participate. Chapter 12 will also discuss how to
secure the right to organize events through a bidding process and the
need to measure and research techniques to measure the success of
the events you host.

GAME HIGHLIGHTS
• The technical rules and regulations for producing specific sport
events are fairly standard and can be obtained through national
sport governing bodies or affiliated sport federations. Action
sports are the exception to the rule.
• Test communication systems and make alternative arrangements
in areas with no cell sites.
• Develop rain contingencies.
• Plan events through committees; don’t try to do it all yourself.
• Action sports require you to reinvent the wheel and to continu-
ally involve the athlete.
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C
12
H A P T E R

SPORTS TOURISM:
AN ECONOMIC
CATALYST FOR CITIES
…for what image would be conjured if the noun
“marathon” were used without the adjective
“Boston” in front of it. Would the “Kentucky
Derby” or the “Indianapolis 500” mean as much if a
mental picture of those places were not summoned
each time we hear the event’s name?
Tim Schneider, Publisher,
SportsTravel magazine

W
ment?
HY ARE CITIES INVESTING IN SPORTS EVENTS,
and how can
they maximize and measure the return on invest-

Throughout the United States, the development of


municipal, regional, and even state sport commissions has
been accelerating at an Olympian pace. In 1994, there were
75 sport commissions, and in 2000, there were 228 sport
commissions registered as members of the National
Association of Sports Commissions (NASC). The economic
225

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226 THE ULTIMATE GUIDE TO SPORTS MARKETING

impact that sport events can create has spurred many cities into the
sports tourism arena.
Based on the research of Lisa Delpy Neirotti, a pioneer and expert
in the field of sports tourism, the notion of people traveling to partic-
ipate and watch sport dates back to the ancient Olympic Games and
the practice of stimulating tourism through sport has existed for over
a century. Just recently, however, sport and tourism professionals
alike are realizing the significant potential of sport tourism and are
aggressively pursuing this market niche.
Sport tourism is a three-dimensional concept involving travel
away from home to play sport, watch sport, or to visit a sport attrac-
tion (e.g., hall of fame, stadium) and includes both competitive (i.e.,
tournaments, championships) and noncompetitive activities (i.e.,
recreational hiking, biking). For this chapter, the focus will be on com-
petitive sport tourism.
Numerous reasons explain the increased interest in sport tourism.
Elected officials and their constituents realize that sports events can
generate media exposure, stimulate business and infrastructure
development, generate direct economic income, and improve the
quality of life in the community.
According to estimates made by University of Georgia econo-
mists, a total of $5.1 billion was pumped into Georgia’s economy
from the 1996 Olympic Games. The State of Utah reports that the 2002
Winter Games in Salt Lake City will provide significant economic
benefits to Utah, including $2.8 billion in economic output, 23,000 job
years of employment, and $970 million in income to Utah workers
and business owners. State and local governments will generate an
estimated $236 million in sales, income, property, and fuel taxes, as
well as service charges and other revenue sources. According to
Brenda Pitts, a professor of sports management at Florida State
University, “The 1998 Gay Games attracted over 800,000 people and
generated a little over [$]350 million total economic impact.”
High-profile sport events are not the only economically beneficial
ones. National championships for youth sports illustrate how low-
profile events also can generate a significant economic impact relative
to the funds expended. These events attract athletes, coaches, offi-
cials, and their families, and fans that pay their own way, stay in hotel
rooms, eat in restaurants, and spend money on other essentials. The
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CHAPTER 12 SPORTS TOURISM: AN ECONOMIC CATALYST FOR CITIES 227

Amateur Athletic Union (AAU) national Junior Olympic Games, for


example, attracts approximately 15,000 athletes, not counting their
entourages, making an estimated $40 million impact on the host com-
munity. Chris Green, a youth volleyball coach who frequently travels
with her team exclaims:
The biggest problem with youth volleyball tournaments is
that event organizers do not communicate with the host com-
munity. We often play in small towns, and when 20 to 40
teams of 10 players each, not counting significant others,
ascend on local restaurants they typically are not ready for the
crowd and run out of food.

ORGANIZING A SPORTS COMMISSION


As the competition to attract sport events to a community increases, the
need also rises to provide a central organization, a one-stop point of con-
tact, where event organizers can go for assistance in hosting local
events, bid requests can be reviewed and pursued, and private and pub-
lic funds can be raised. Most sport commissions are housed within the
Convention and Visitor Bureau or Chamber of Commerce, although
some are independent for-profit or not-for-profit organizations. Many
have a staff of one, while others have 10 or more employees, depending
on the size of the area and number of events directly produced by the
commission. Representatives from the sport, hospitality, entertainment,
tourism, and transportation sectors, as well as corporate, media, and
government officials should be included on an advisory board or on the
board of directors, as each contributes to a successful sport event. Refer
to the National Association of Sports Commissions Web site for addi-
tional information at www.sportscommission.org.

ASSESSING YOUR COMMUNITY


Utilizing the SWOT analysis approach, the first step a community
should take is to assess their physical, financial, and human
resources. This involves a facility inventory to determine exactly
what venues are available to host sport events (e.g., gymnasiums,
swimming pools, convention centers). It also requires a polling of the
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228 THE ULTIMATE GUIDE TO SPORTS MARKETING

corporate community to determine if they will support sport events


hosted in the community through sponsorships and ticket purchases.
Finally, an evaluation should be conducted that analyzes the type of
sports that are widely practiced and popular in your community (in
other words, in what events will citizens participate as spectators or
participants), as well as the expertise of the community in hosting
sport events and their willingness to volunteer.
Following is a checklist to determine if your community is appro-
priate for the sport event:
Does your county/city have
• the appropriate facilities?
• a local sport club/organization to support the event?
• corporate and public interest in the event?
• expertise and time to successfully produce the event?
• space on the “big picture” calendar to schedule the event?
At the same time, the goals and objectives of hosting sport events
should be determined. Is the community pursing events for econom-
ic gain, media exposure, business development, or quality-of-life
enhancement? High-profile events are not necessarily money win-
ners, because of the expense of hosting them, but they do create an
enormous amount of media exposure and excitement within a com-
munity.
For sport events that offer little opportunity for local people to
attend, it is most important for the organizers to offer an entertain-
ment alternative. Local citizens may otherwise feel as though some-
one were having a party in their backyard and using their barbecue
and swimming pool, but forgot to invite them. Such dismay in the
long term may hurt future bid campaigns if public support is low.
This is why the NFL created the NFL Experience around the
Super Bowl and the NBA created the NBA Fan Jam around the All-
Star Game. Each of these events brings the sights, sounds, and feel of
the NFL and NBA closer to all fans and local citizens unable to attend
the game.
Once you have decided on the type of sport event that your com-
munity is interested in and capable of hosting, the next step is to
approach the sports organizations or event property rights-holder.
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CHAPTER 12 SPORTS TOURISM: AN ECONOMIC CATALYST FOR CITIES 229

BIDDING FOR EVENTS


Most sport organizations will be able to send you a bid document
(also referred to as a “bid guide,” “bid booklet,” or “bid handbook”).
This document should not only provide historical and demographic
information about the organization and sport but details about the
type and dates of events available to host, the rights and responsibil-
ities of all parties involved, and the benefits associated with each
event. A number of organizations also have this information posted
on their Web site.
More specifically, the bid document should include the dates and
locations of past events, along with the number of participants, offi-
cials, and spectators; the number of room nights booked; an estimat-
ed direct economic impact; the type and amount of media coverage;
and a contact person. Furthermore, for future events, specific infor-
mation should be provided regarding the minimum competition site
dimensions (i.e., height, width) and other facility requirements such
as spectator and media seating, parking, and restrooms; floor surface;
light level; food service; locker rooms, storage, media, officials, and
medical areas; practice facilities; and air conditioning. Additional
information pertaining to the acceptable type and average cost of
accommodations for athletes, spectators, media, and VIPs; the pre-
ferred time frame for hosting the events; and the bid deadline for each
event should also be outlined. If this information is not provided, be
sure to ask the appropriate questions.
Other items that need to be clarified in the bid document or
through correspondence include the rights and responsibilities of the
host committee and of the event rights-holder (e.g., the National
Governing Body [NGB]). The host committee or promoter is general-
ly responsible for the following:
• Collecting and accounting for all event-related money (e.g.,
entry fees, local sponsorships, program advertisements and
sales, food and beverage concessions, and parking fees)
• Providing the competition venue and transportation service for all
staff and participants from airport to hotels and to competition sites
• Making accommodation arrangements and covering the room
and board for a specific number of officials and participants
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230 THE ULTIMATE GUIDE TO SPORTS MARKETING

• Hosting hospitality suites and VIP receptions


• Supplying office equipment (photocopying machine, fax, tele-
phones, and computers with printers), event T-shirts, musical
entertainment, meeting rooms, space for merchandise sales, elec-
tronic scoring/timing system, and complimentary tickets with
preferential seating and parking for the sport organization
• Securing all management, volunteer, and medical support staff,
designing and implementing a marketing plan, and paying a
monetary bid fee or percent of gate receipts
Typically, the sport organization is responsible for sanctioning the
event, providing insurance, securing and assigning officials and ath-
letes, providing mailing labels, and providing athlete biographies
and photos for promotional purposes. Other areas of responsibilities
such as photography, public-address announcer, securing television
coverage, designing and ordering awards, sponsor banners, and
transportation costs to the event for officials and athletes are often
delegated based on the resources and structure of each party.
In addition, to avoid any confusion in the marketplace, bid docu-
ments should define the sponsor product categories not available to
the local host committee and the manner in which the local host com-
mittee can use the name and logo of the event and sport organization.
Similarly, the property rights-holder should ask for a list of perma-
nent corporate signage in the proposed facility; who has pouring,
concession, and parking rights; if the facility workforce is unionized;
and who controls the box office. Figure 12-1 lists the components of a
bid proposal that need to be completed by the community interested
in hosting an event.
For most events, a selection committee will simply review the
submitted bid and make a decision. For other events, a site selection
committee may conduct a site visit, and for major events such as the
World Cup, the bidding organization will be asked to make a multi-
media presentation. Although never included in any formal docu-
mentation, extra amenities and creativity in preparing and delivering
bids never hurt. When the New York Knicks bid for the 1998 NBA All-
Star Game, they sent their bid in a locked safe. The only way to obtain
the combination to access the contents of the safe was to look at a five-
minute videotape that was an audiovisual representation of their bid
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CHAPTER 12 SPORTS TOURISM: AN ECONOMIC CATALYST FOR CITIES 231

Figure 12-1

Components of a Bid Proposal


Venue Specifications
Facilities
Dimensions
Light level
Prevailing winds
Age of floor surface
Seating (temporary/permanent)
Press box seating
Parking
Storage/meeting facilities
Food service availability
Locker room
Practice sites
Construction required
Business and Environment
Metropolitan population
Major industries
Colleges/universities
Pro teams
Foundations
Weather (highs, lows, precipitation)
Altitude
Public transportation
Accommodations (total bed capacity, average price per room)
Media outlets
Medical facilities
Tourist attractions
Bookend events
Family program
Agency Information
• Structure (e.g., 501-C-3)
• Experience
• Calendar of events

with the combination at the end. This obviously caught the attention
of the selection committee.
As far as bid fees, the amounts listed in bid documents are nego-
tiable based on the number of cities bidding and the overall package
a community presents. For some NGBs, cash talks, and for others, the
decision depends more on historical and technical factors.
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232 THE ULTIMATE GUIDE TO SPORTS MARKETING

Establishing an operationally and financially successful reputation is


critical, explains Mark McCullers, general manager of the Crew
Soccer Stadium, LLC. The sports world is small, and word spreads as
to who can and cannot host a successful event. Frank Supovitz, group
vice president, Events and Entertainment, for the National Hockey
League, believes the major difference between what makes an event
good and what makes an event great is how invested the local com-
munity is in the event. This was definitely proven by the success of
the 2000 Sydney Olympic Games. The volunteers and citizens of
Sydney were extremely hospitable and genuinely excited to host the
Games. Whatever you do, don’t be too anxious to attract an event and
overbid. A good rule of thumb suggested by Dennis Gann, executive
director of the Sioux City Convention Center and Auditorium
Tourism Bureau, is to make sure you can cover the amount of the bid
fees through sponsorship. If in doubt, it would be wise to share the
request for proposal with local businesses to see if there is interest in
the community, and whenever possible, get letters of commitment
before bidding for the event.

HOMEGROWN EVENTS
Not all events require a bid application, and with rising bid fees, more
and more communities are seeking to create their own events or look-
ing toward supporting local event entrepreneurs. Many times, sport
events begin as one individual’s dream and build into a national or
international event. The Des Moines Register newspaper’s Annual
Great Bicycle Ride Across Iowa (RAGBRAI) is but one example. This
event was first planned in 1971 by a cyclist enthusiast employed by
the Des Moines Register. In 29 years, the number of participants has
increased consistently from 6 to 13,000 (of the 13,000 riders, only 8,500
paid entry fees and are considered sanctioned participants), with an
additional 300 support staff and volunteers per overnight city stop.
Large sport events such as the Tour de France and the RAGBRAI
can bring favorable publicity to and have an enormous economic
impact on a region. In 1999, the economic impact of RAGBRAI on the
Sioux City area was $900,000. Because of the high visibility and inter-
est in being a host city along the tours, a competitive bid process is
implemented. The organizers of each of these cycling events provide
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CHAPTER 12 SPORTS TOURISM: AN ECONOMIC CATALYST FOR CITIES 233

prospective cities with a bid manual outlining all the needs of the
committee and responsibilities of hosting the start, finish, or
overnight stop. A committee reviews each proposal based on estab-
lished criteria and special circumstances that may enhance the event
(e.g., the 100th anniversary of a city or special festival). Dennis Gann
states that
the RAGBRAI route is often planned for a specific reason and
that an attitude of a city is very important in the selection
process. It’s amazing how many towns of two to three thou-
sand want to host an event consisting of 13,000 participants.
Surprisingly, it is these small towns that tend to do a better job.
Registration fees of $95 for the RAGBRAI are paid directly to the State
of Iowa. Each host city is then reimbursed (e.g., Sioux City received
$86,000 to offset some costs). Additional funds are raised through
concessions. During the RAGBRAI, 10-foot  10-foot concession
booths are rented at a flat fee ($250 to $350), and the organizers take
10 percent of the gross sales.
Keep in mind that when looking at most sport events purely from
a bottom-line perspective, typically not much profit is shown. The
intangible and trickle-down economic impact, however, is what
makes sport events worth the effort.

MARKETING YOUR CITY AS A SPORTS CENTER


To attract more events, many sport commissions produce quarterly
newsletters; create attractive Web sites; produce a sports facilities
guide or CD-ROM; advertise in trade publications such as
SportsTravel magazine; and attend, exhibit, and network at sport con-
ferences like the TEAMS (for Travel, Events, And Management in
Sports conference) or the Sport Summit. In addition, it is important to
build a reputation through hosting small to large events. Remember,
the sport community is a tight circle, and word travels quickly con-
cerning successes and failures.
Finally, within your community it is helpful to host a sport
tourism/marketing seminar, like those conducted by Lisa Delpy
Neirotti, to educate local hospitality providers, sport venue man-
agers, coaches, government representatives, and other businesses
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234 THE ULTIMATE GUIDE TO SPORTS MARKETING

about the process of bidding for events as well as the requirements to


host events, including marketing, sponsorship, and logistics. This
way, all local stakeholders understand what it takes to achieve the
goals and objectives of the sport commission or the group promoting
sport tourism in the community.
One of the fastest ways to build internal support for sport events
is to measure their impact on the community.

MEASURING THE ECONOMIC IMPACT


Whether it is a national croquet tournament that attracts 300 visitors, a
major youth soccer tournament that attracts 5,000 visitors, or the
Olympic Games that attracts over a million visitors, measuring your
economic impact as well as other success indicators is vital to the con-
tinued growth and support of the event and the organizing committee.
These studies are commissioned by organizing bodies as well as
supportive governmental and sponsoring officials. Unfortunately,
because of the complexity of economic impact research, many such
studies are flawed, resulting in false conclusions about the economic
effect an event has on a community. Therefore, it is important for
sport event managers to understand how to conduct, interpret, and
evaluate economic impact studies for sport events.
To begin with, sport event managers must decide whether they
are interested in taking a conservative or liberal approach. For the
most accurate and conservative estimate, expenditures of nonresident
participants and spectators only should be included in the study, as
this represents new dollars to the area. A narrow definition of a non-
resident—also referred to as a visitor or tourist—is one who travels a
minimum of 100 miles away from home or stays one or more nights
in paid accommodations regardless of distance from home. A broad
definition is anyone who travels outside of his or her residence.
Often, however, study organizers prefer a more liberal estimate of
“economic activity” or “economic surge,” including all expenditures
associated with an event irrespective of whether they derive from res-
idents or visitors. Obviously, such an estimate will produce a larger
economic impact figure.
Likewise, the size and makeup of the impact area under study
will influence results. The larger and more urban the jurisdiction, the
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CHAPTER 12 SPORTS TOURISM: AN ECONOMIC CATALYST FOR CITIES 235

less likelihood of leakage (money leaving the area) and the higher the
multiplier coefficient (the number used to estimate indirect economic
impact), if a multiplier is used.
To increase the accuracy of the study (and further complicate the
selection process) only qualified visitors who would not otherwise be
in the area except for the purpose of the sport event should be includ-
ed in the sample. This eliminates expenditures from “casual atten-
dees” and “time switchers”—those who are either visiting for anoth-
er reason and happened to attend or participate in the sporting event
or who had planned to visit the area anyway but switch dates in order
to attend the sport event. Completely eliminating the casual atten-
dees or time switchers, however, means not counting the extra money
that these visitors may spend in a city because of the event (such as
additional hotel nights).
Once you’ve decided whom to study and within what area, you
must decide what data to collect and how. The data collected should
include the amount of daily visitor spending on lodging, food and
beverage, entertainment, transportation, retail shopping, and the
number of nights stayed. A sample survey is provided in Figure 12-2.
For large events such as the Olympic Games when plans begin six
years in advance, operational expenses of the organizing committee
should also be collected and included in the final economic impact.
The chosen methodology will depend on how exact you want your
numbers, as well as what resources you have available. In general,
there are two ways to estimate the magnitude of economic impact: the
survey method (primary data collection) and the nonsurvey method
(secondary data collection).

The Survey Method


With the survey method, you collect data from a sample of people
(such as event participants and spectators) through interviews, in
person or over the phone; self-administered surveys filled out and
returned by mail, in a drop box or to designated survey collectors; or
expenditure logs/diaries, which the visitors use to keep track of what
they spend and then mail back after they get home. Each survey
method has its merits and shortcomings (see Figure 12-3).
In addition to the points listed in Figure 12-3, other factors relat-
ed to the survey methodology may affect results, such as recall bias,
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236 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 12-2

Sporting Events Economic Impact Survey


Have you traveled 100 miles or more to attend this event OR are you spending
the night in (local) County? YES NO
Please list your RESIDENTIAL ZIP CODE __________________
(You must have traveled 100 miles or are spending the night to proceed with the
survey. Thank you.)
1. Is this event the primary reason you traveled to the area? YES NO
If no, what is your primary reason for traveling to this area?
a. Business
b. Visit friends/relatives
c. Vacation
d. Other _______
2. How many nights are you planning to stay in the area? _______
(if none, proceed to number 6)
3. What type of accommodations are you staying in while in the area?
a. Hotel/Motel (please check the specific property)
____ Holiday Inn
____ Hilton
____ Marriott
____ Hampton Inn
____ Other _________________________
b. Staying with friends/relatives
c. Other ________________________________
4. How did you find out about the accommodations?
a. Convention and Visitor Bureau Web site
b. Travel agency
c. Tournament organizer
d. Tourism advertisement
e. Other _________________________
5. What are your individual expenditures on accommodations per day?
$_____________
6. How many people, including yourself, are traveling in your party?
______________
6a. If applicable, how many hotel (motel) rooms is your travel party renting?
_____________
Based on a typical day during your visit, what are your individual expenditures
on:
7. Food and beverage
$__________
continued on next page
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CHAPTER 12 SPORTS TOURISM: AN ECONOMIC CATALYST FOR CITIES 237

Figure 12-2 continued

8. Local entertainment (e.g., amusement parks, movie theaters, golf, etc.)


$__________
9. Local transportation (e.g., rental car, metro, bus, taxi, gas, etc.)
$__________
10. What type of transportation did you use to arrive to the area?
a. Personal car (own or borrowed)
b. Rental car
c. Bus
d. Train
e. Commercial airline
f. Other (specify) ______________
10b. If applicable, what was the cost of your air/bus/train ticket? $____________
What is your individual expected total expenditure on:
11. Event merchandise (excludes food and beverage)? $__________
11b. Other shopping (nonfood) in area? $__________
12. What is your individual expected total expenditure for this trip, excluding
cost of air/bus/train transportation to area? $_______________
Demographics
13. Gender
Male Female
14. Age
• Between 18 and 24
• Between 25 and 34
• Between 35 and 44
• Between 45 and 54
• Between 55 and 64
• Between 65 and 74
• 75 or older
15. Marital status
• Single (never married)
• Married
• Divorced/separated/widow
16. Highest level of education completed
• High school (grade 12)
• Some college
• College or university
• Advanced or postgraduate degree (Master or Ph.D.)
• Technical school
17. Occupation
• Executive
continued on next page
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238 THE ULTIMATE GUIDE TO SPORTS MARKETING

Figure 12-2 continued

• Professional
• Laborer/Service worker
• Retired
• Student
• Other _________________
18. How many members of your household contribute to your gross annual
household income?
1 3
2 4 or more
19. What was your annual household income before taxes in (year) in U.S.
dollars?
• less than $50,000 U.S.
• between $50,000 and $74,999 U.S.
• between $75,000 and $99,999 U.S.
• between 100,000 and $124,999 U.S.
• between $125,000 and $149,999 U.S.
• more than $150,000 U.S.
• don’t know/refused
Thank you very much for your time.
To be completed by interviewer
Interviewer Name: ___________________________________
Location of Interview: ______________________________
Date of interview: ___/___/__ Interview Number: ________

response bias, and level of instruction. Recall bias generally occurs


when subjects are not asked about their expenditures until a consid-
erable time after their visit, which usually results in an underestima-
tion of expenditures; it is recommended to survey visitors within 24
hours of their visit and certainly no later than one week afterward.
Recall bias may be a factor for people on package tours or for corpo-
rate guests who do not know the exact cost of the trip and can only
estimate.
Response bias may occur if the response rate is low, the sample is
self-selected, or responses are projected. If the response rate is low,
the question arises as to whether the nonrespondents differ from the
respondents. One solution is to randomly select a small subsample
of nonrespondents and interview them, either by telephone or mail
follow-up, to see whether their responses are significantly different.
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CHAPTER 12 SPORTS TOURISM: AN ECONOMIC CATALYST FOR CITIES 239

Figure 12-3

Summary of the Merits and Shortcomings of Various Survey Methods*


Survey Methods Merits Shortcomings
Interview
On-site interview Opportunities for feedback Cost
High participation Labor-intensive
High completion of survey Projection bias
Telephone interview Opportunities for feedback Cost
Absence of face-to-face contact Sample bias
Recall and response bias
Self-Administered Survey
On-site self-drop-off Low labor intensity Low return rate
survey No interviewer bias Sample bias
Mail survey Low labor intensity Low return rate
Interviewer’s absence Recall and response bias
A representative sample Cost
Expenditure logs Most reliable and accurate High mortality rate
or diaries Low response rate

* This table is modified from the one developed by D. W. Turco in “Measuring the
Economic Impact of a Sporting Event,” a paper presented at the 1995 North American
Society for Sport Management Annual Conference, Athens, Georgia.

The appropriate sample size depends on the size of the visitor


population and the acceptable variability for the study. A mathemat-
ical formula is available, but for most sport events, a sample size of
300 to 400 would be appropriate. The issue of self-selected samples
occurs when visitor addresses or telephone numbers are obtained
mainly from lists of prepurchased tickets. The use of such lists auto-
matically limits the sample to individuals who have the interest and
resources to plan ahead; they may not represent the average visitor.
An alternative is to randomly or systematically (i.e., every nth
patron entering the event) ask individuals at the event if they would
be willing to answer questions in a follow-up telephone or mail sur-
vey. This approach not only allows for a more random sample but
also helps to increase response rates. The obvious drawback is the
cost of on-site staffing and the possibility of recall bias if the survey
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240 THE ULTIMATE GUIDE TO SPORTS MARKETING

administrator does not contact the subject immediately after the


event, whether by mail or telephone. Another method is to distribute
the surveys at the sports event with instructions to complete and
return them immediately upon returning home. The risk with this
method is that subjects could lose the survey before filling it out and
returning it, resulting in a low response rate.
Another option is to conduct the surveys on-site. Unfortunately,
on-site surveys require the visitor to project their expenditure; those
projections are typically underestimated. Daily expenditures often
depend on the outcome of a competition. Early elimination may cause
a spectator or participant to go home early and spend less; good results
may encourage the spectator or participant to celebrate and thus spend
more. The weather could also affect how long fans stay in the area.
To rely less on projections, the recommended method is to sample
visitors daily and ask what they spent in the area in the previous 24
hours, as well as how long they expect to stay; for one-day events,
interview visitors as they are leaving. The response rate of exit inter-
views, however, will likely be low, as most visitors are eager to depart.
Surveys can also be distributed in registration packets or pro-
grams if they are provided to all participants and spectators. Again,
low response rates will likely bias the results. Overall, the diary or log
appears to be the most reliable data collection methodology, elimi-
nating the “projection” factor and recall bias. Response rates tend to
be low, however, ranging from 5 to 30 percent depending on follow-
up efforts and incentives. Incentives range from a complimentary
program, beverage, or event souvenir to entry drawings for saving
bonds or free tickets/registration to the next event.
Attention to where and when surveys are distributed and collect-
ed may also help to make the results more reliable. This is particular-
ly true for multi-event and multivenue research. At the Olympic
Games, for example, spectators at a tennis or gymnastic event may
differ dramatically from the wrestling or track-and-field ticket hold-
er, just as those who attend qualifying matches may differ from those
at the finals. Likewise, specific-level ticket holders utilize certain
venue entrances and exits.
The clarity and consistency of instruction to the subject, whether
written or presented orally, will particularly affect the validity of the
data. When asking subjects to record expenditures, they should be
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CHAPTER 12 SPORTS TOURISM: AN ECONOMIC CATALYST FOR CITIES 241

instructed to include only those expenses that were purchased in the


impact area and paid for personally, whether for themselves or for
others. Obviously, if a wife includes a meal that her husband paid for
and the husband also reports this expense, an error in double count-
ing will occur.

The Nonsurvey Method


The nonsurvey method is the most economical and convenient way
to estimate economic impact of sporting events, so it is used most
often. With this method, convention and visitors bureaus or econom-
ic development agencies develop per capita expenditure figures from
past data, and those figures are multiplied by the number of visitors
and the number of nights spent in the area. The result is an estimate
of total direct visitor impact. One of the most significant problems
with using existing per capita figures is that one must rely on the
methods by which the initial data were gathered in the primary study.
Spectators and participants at different types of sporting events
spend differently. For example, differences exist between youth and
adult competition, between regional and international events,
between participant-dominant events and spectator-dominant
events, and between individual events. Also, many per capita figures
are based on business travel, where hotel occupancy is one per room,
unlike sport travel, where the average is over two per room.
The best approach is to first conduct primary research at different
sport events to determine a sport event per capita that can then be
plugged into a formula for future events. Even so, a number of factors
unique to each event influence their economic impact, which is why
the economic impact reported for an event in one city should not be
assumed to be the same for another city. Those factors include the dis-
tance of the participating teams from the host site, the novelty of the
destination for spectators and participants, the size of the sport
venue, the distance from the venue to the business district, the level
of supporting infrastructure in the host community, the format of the
event (i.e., single-elimination, day of rest between matches), and the
time between qualifying tournaments and the championship tourna-
ment (i.e., the shorter the time, the less opportunity for sport tourists
to plan their trips). The amount of positive or negative media atten-
tion, the promotional budget, the weather, and accessibility are also
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242 THE ULTIMATE GUIDE TO SPORTS MARKETING

factors. For international events, the strength of the local currency,


language barrier, and the ease of entry to a country may impact the
number of foreign visitors to an event.
Once all of the direct economic impact figures have been deter-
mined through survey and nonsurvey methods, the next step is to
determine if a multiplier should be used to calculate indirect (or
induced) impact. Most researchers utilize a multiplier in order to esti-
mate the total economic impact of an event, yet there is much discus-
sion about the appropriateness of multipliers especially for short-term,
one-time-only events (Direct  Indirect  Total Economic Impact).

The Use of Multipliers


Researchers who measure the total economic impact should decide
what type of multiplier to use. Researchers who want to determine the
total net economic change in a host community attributable to a sport-
ing event usually apply an output or sales multiplier. Determining the
total net economic change in residents’ income or wealth because of a
sport event calls for an employment multiplier or an income multiplier.
Most economists believe that the most useful and conservative
approach is the latter, as most residents are concerned with the impact
of sales on household income and employment, not with the value of
the sales themselves, which has no effect on their standard of living.
Others believe that the use of employment and income multipli-
ers should depend on the potential of the event or establishment to
generate new jobs and the durability of such jobs. For example, when
studying the economic impact of sport facilities or businesses, an
employment multiplier would be appropriate because the establish-
ment is expected to be around for a long time.
The household income multiplier or a wage income multiplier is
most appropriate in the case of short-term sporting events, as current
local employees work more hours during the event, though the num-
ber of employees usually does not increase. The increase in house-
hold earnings can thus be estimated by multiplying total local expen-
diture by the average regional earnings multiplier. That multiplier is
provided in terms of a number of annualized jobs for each million
dollars in local expenditures. Remember that sales and earning
impacts are simply different ways of looking at the effects of an event
or establishment and should not be added together.
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CHAPTER 12 SPORTS TOURISM: AN ECONOMIC CATALYST FOR CITIES 243

Furthermore, for each type of multiplier, there are different multi-


plier coefficients per industry category as calculated through one of
the input-output models available. The most common models include
the U.S. Department of Commerce’s Regional Input-Output
Modeling System (RIMS II), the U.S. Department of Agriculture
Forest Service IMPLAN (Impact Analysis for Planning) model, and
REMI (the Regional Economic Models, Inc.). Although it is beyond
the scope of this book to provide in-depth information on the differ-
ences between each of these models, suffice it to say the RIMS II is
most often used in economic impact analysis.
Finally, once a model is selected, to calculate the most accurate
estimate of indirect impact, the direct expenditures per industry
should be applied to the multiplier for that specific industry category
(transportation expenditures x the multiplier of the transportation
industry). Most commonly, however, an aggregated multiplier or the
multiplier from the most relevant industry category (e.g., amuse-
ments) is used in the determination of the total economic impact. The
Florida Department of Commerce, for example, suggests using the
average regional amusements output multiplier.
Another type of impact to add to the analysis is fiscal impact.
Fiscal impact refers to the government revenue generated by an event
(e.g., sales tax, transient lodging tax, food service tax, amusement tax,
auto rental tax, gasoline excise tax, and parking fee/fines). Estimates
of fiscal impact are measured by applying the appropriate-category
tax rates to the total spending for that category (e.g., hotel tax rate 
hotel receipts). Fiscal impact should be calculated separately from
direct economic impact because government revenue is not immedi-
ately recirculated through the impact area. A true net estimate of fis-
cal impact must also subtract government subsidies from the total
revenue generated. (e.g., direct  indirect  total economic impact 
fiscal impact  government subsidies).
Government subsidies include money spent by local government
to attract the event or establishment and the cost of additional pub-
lic services required by the event or establishment (e.g., traffic con-
trol, security; debt service on a publicly owned facility; and operat-
ing losses on a publicly owned facility if that facility was built to
attract the event). If the facility is a multipurpose one, the debt ser-
vice and operating loss should be prorated over various uses. Also,
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244 THE ULTIMATE GUIDE TO SPORTS MARKETING

before subtracting all government subsidies, consideration needs to


be given as to whether or not the area would have received these
government funds without the event—that is, was money simply
redirected from another project within your area or was it reallocat-
ed to your area?

Ways of Reporting
In addition to the use of different methodologies and multipliers, the
way in which results are reported may also alter the overall picture of
the economic impact and cause problems in comparing studies. Some
researchers report the median versus the mean results or the expendi-
tures per group versus individual. Some studies may report only visi-
tor expenditures yet state that they have calculated the total economic
impact. Others include local spectator and participant spending and
claim that the economic impact is generated from new dollars to the
community. These are just a few of the inconsistencies found in reports.
When it comes to employment impact, the number of jobs gener-
ated is best stated in full-time equivalents, or FTEs, but it is not
always done this way. Because many of the jobs associated with sta-
dium and event management are part-time, the total work hours
related to part-time jobs should be aggregated and then divided by
the number of hours in a full-time work year to derive the FTE meas-
ure. In reality, there will be a greater number of people employed than
the FTE measure indicates, but some of them on a part-time basis. For
example, for a typical Washington Redskins game day, there would
be an estimated 1,800 part-time employees.
Other factors to consider in the reporting of a study are the infor-
mation not included or additional impacts not accounted for. Most
often, the return on investment (ROI) and/or net economic impact
are missing from economic impact studies. Return on investment can
be calculated by adding event revenue and tax revenue generated
and dividing by the event expenses. Such calculations are particular-
ly important when significant public investment (e.g., extra police,
waste disposal, road maintenance, fire protection) is made, as gov-
ernment officials are interested in knowing if the investment was
worth making or if there was an opportunity cost (could the money
have provided a greater ROI if invested elsewhere). These measure-
ments are also helpful for event organizers working toward the eco-
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CHAPTER 12 SPORTS TOURISM: AN ECONOMIC CATALYST FOR CITIES 245

nomic development of a community. “The host committee of a Super


Bowl, for example, spends approximately $7.5 million,” explains Jim
Steeg, vice president of Special Events for the NFL.
Montgomery County in Maryland estimated a $100 million total
economic impact from the 1997 Kemper Open and U.S. Open, which
were held within a two-week time period. The cost to the county was
estimated at $123,000, of which $50,000 was spent on traffic control
and signs, $30,000 on extra police, and $43,000 on hospitality of rep-
resentatives from current and potential companies conducting busi-
ness in the county.

Overlooked Items
There are also a number of areas of significant activity that are often
left out of economic impact studies because of the difficulty in col-
lecting data or accurately attributing the impact. These include pre-
event activities and training days; expenditures of nonspectator visi-
tors traveling with ticket holders; air transportation; induced devel-
opment and construction expenditures; off-site private parking;
increased economic activity by local fans who are not ticket buyers;
event product extensions such as youth sport clinics, educational
training programs, and philanthropic/social causes; additional trade
and business development; and property value increases.
Nontangible effects—those that cannot be definitively meas-
ured—should also be considered for inclusion in economic impact
studies. These include long-term tourism promotional benefits, civic
pride, increased community interest in sport, community develop-
ment in terms of skills and facilities, and heightened media attention.
Finally, nontangible costs should be considered in an economic
impact study to fully understand the net value of a sport event or
establishment to a community. These include increased traffic con-
gestion, crime, vandalism, litter, noise, and disruption to existing res-
idents’ lifestyles; the creation of a poor reputation if facilities and
services are inadequate; inflation and increased hedonistic business-
es; resident exodus; and interruption of normal business.
The economic impact of a sport event should be measured above
and beyond the short term. It should be measured based on its impact
on the area’s long-term development plan and include the percep-
tions of residents within the impact area. Adopting a conservative
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246 THE ULTIMATE GUIDE TO SPORTS MARKETING

methodology will limit the overestimation of an event’s true eco-


nomic impact and avoid possible disappointments.

ADDITIONAL RESEARCH
In addition to economic impact, exit studies of customers should be
conducted to determine the customers’ level of satisfaction with park-
ing, admissions, advertising, facilities, and other important planning
details of your event. Members of the community should also be sur-
veyed to determine their psychographic reactions to the sport event
and its contributions to community lifestyle. Finally, if a charity is a
beneficiary of the sport event, survey the leadership, board, and staff
to gain their perspective on whether this sport event was a success.
Additional suggestions on how to successfully work with a charitable
organization are provided in Chapter 13.

GAME HIGHLIGHTS
• Conduct a facility, financial, and human resource audit to deter-
mine the opportunities your city has to host sport organizations.
• Determine why you want to host events, and bid for those that
meet these objectives.
• Market your city as a sport haven through advertisements, net-
working, and hosting well-organized and profitable events.
• Conduct research studies to determine the economic and social
impacts of the event.
• Don’t be overanxious to host events; make sure it is a good
match for your community.
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C
13
H A P T E R

CHARITABLE EVENTS
No matter how far you look and no matter how far
you go, the greatest athletes in this world are these
special athletes.
The late Lyle Alzado, Denver Broncos
defensive lineman, on the Special Olympics

W HY DO CHARITIES ALIGN THEMSELVES


and what are the benefits for each?
with sport events

The Race for the Cure, the March of Dimes


WalkAmerica, and the Dinah Shore Golf Tournament are
familiar events because of the annual publicity they receive
through television, radio, and newspapers. Each of these
highly popular sport events also provides an opportunity
to help others through sport.
In a charitable sport event, the proceeds—loosely
defined as the funds remaining after all the expenses have
been paid—are donated to a worthwhile cause such as
AIDS research. Each year thousands of sport events bene-
fiting charities take place throughout the United States and
around the world.
Why the popular connection between sport and fund-
raising? One reason is the enormous universal popularity
of sport events. Whether you are selling tickets to a benefit

247

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248 THE ULTIMATE GUIDE TO SPORTS MARKETING

basketball game where a local radio station’s personalities are bat-


tling the Harlem Globetrotters or creating your own fun-run to bene-
fit cancer research, you will find widespread support for your sport
event program.
Another reason is that charitable events are spectator-friendly.
The fans do not need to wear an evening gown or a black tie and tail-
coat. Casual dress allows them to relax. Some individuals view the
participation in the exercise (e.g., bicycling, running) as an added
value for their charitable donation.
Perhaps the most important reason for this linkage is that sport
represents health and many charities are concerned with illnesses that
have no cure. An excellent example is the Susan G. Komen Race for
the Cure. The event started in Dallas, Texas, with 800 participants and
grew to a national series of 109 races with more than a million partic-
ipants in 2000. Similarly, a field of 1,600 pedaled from North Carolina
to Washington, D.C., as part of the AIDS Ride 2000. Each rider had to
raise $2,000 to enter.

WHO BENEFITS?
The charity ultimately benefits from the proceeds of the sport event,
but the linkage with a charity might also bring about greater fan inter-
est in the sport. In the best of worlds, three interrelated groups will
benefit:
1. The charitable organization will benefit from new monies to aid
its cause and from greater visibility for the organization. Because
sport events are highly public spectacles, the charitable organi-
zation has an opportunity to obtain a wider public through a
well-planned public relations campaign tied to the sport event.
2. The participants benefit not only from the knowledge that their
entry fees and concession dollars are benefiting a worthwhile
cause but also because they are attending a healthy activity in
cycling, bowling, golf, tennis, and so on.
3. The greater business community will benefit from the residual
revenue that may be brought in a result of the sport event. As
discussed earlier, hotels, restaurants, retailers, and parking lot
operators will benefit from this activity.
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CHAPTER 13 CHARITABLE EVENTS 249

FINDING THE RIGHT CHARITABLE ORGANIZATION


One of the most difficult tasks for a sport event professional is to iden-
tify a well-organized and reputable charitable organization to partici-
pate in a sport event. This task may be made easier by following the
simple instructions in Figure 13-1. One key element to consider is how
the charity’s mission will appeal to your target audience. Some sport
events attract primarily a male audience; therefore, a charity such as
ovarian cancer research may have limited appeal to this audience.
However, you can possibly broaden the appeal of the charity by intro-
ducing a famous soap opera actor or actress who will attract the wives
and significant others of the primarily male audience.
Once you have identified your target audience, the next essential
step is to begin discussions with the charity whose constituents will
support your sport event. Find an opportunity for the charity’s lead-
ership to witness one of your sport events. Invite leaders of the arena,
park, or bowling alley to see your sport event in action. It will be eas-
ier to enlist their support and full participation following this positive
experience.
Organize the important planning meeting with the charity well in
advance. Speak with the executive director of the charity and get his
or her agreement on the agenda. This planning meeting is critical to
your overall success, and therefore, it must be well organized. Figure
13-2 suggests a sample agenda for this meeting.

Figure 13-1

How to Find a Suitable Charity


1. Ask the National Society of Fund Raising Executives to recommend names of
reputable charitable organizations in your community.
2. Determine the type of charity that is a complementary match to your sport
event. Drag car racing is probably an inappropriate match for Mothers
Against Drunk Driving (MADD), while tennis, golf, or basketball might be
fine.
3. Interview the charity’s executive director and find out what his or her
strategic plan is. How does your sport event activity fit in?
4. Ask what the charity’s leadership will contribute in terms of mailing lists,
volunteers, and other contributions in exchange for being designated the
official beneficiary of your event.
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Figure 13-2

Sample Agenda: Planning the Charitable Sport Event


1. Welcome and introduction of committee members
2. History of sport event and charity
3. Goals and objectives of sport event and charity
4. Strategies for achieving goals and objectives
5. Public relations, marketing, and advertising
6. Financial goals
7. Role and scope of individual responsibilities
8. Discussion
9. Establishment of next meeting date
10. Adjournment

WHAT DOES THE CHARITY BRING TO THE SPORT EVENT?


Athletes Against Drugs, a Chicago-based charity, provides a detailed
proposal to event organizers and asks that promoters do the same.
“Once, during a golf tournament, we discovered that the promoter
was unscrupulous. Had we done our homework, we could have
avoided this awkward and potentially embarrassing situation,” says
Stedman Graham, its executive director.
The charity may possess numerous resources that will contribute
to the success of the sport event. Figure 13-3 indicates the range of
resource possibilities, although you will not necessarily require all of
them. These are only a few of the possible resources. Most major char-
ities such as the United Way will have a detailed planning guide for
staging your live event that will make the implementation of these
resources easier to accomplish.

LEGAL CONSIDERATIONS
Nonprofit organizations are required by federal, state, and local law
to report their activities on a regular basis. As a fund-raising activity,
your sport event may be required to document its activities.
Therefore, good financial records are essential. In setting up your
ledger, seek the advice of an accountant who specializes in not-for-
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Figure 13-3

Possible Charitable Resources


Volunteers for:
• Mailing
• Telemarketing of tickets
• Staffing the event such as ushers, ticket takers, and officials
Concession suppliers and operators for:
• Programs
• Food and beverage
• Merchandise
Transportation for:
• VIPs
• Entertainers
• Game officials
• Spectator parking shuttles
• Media
Entertainment for:
• Pregame
• Halftime
• Postgame
• Private hospitality tents
• Contacts with major-name stars supporting the charity
Guest and mailing lists for:
• Major donors
• Corporate donors to purchase skyboxes
• General admission sales
• Participants
Name identity (charity’s official name) for:
• Credibility
• Merchandising
• Publicity
• Recognition
Prospective sponsors for:
• Credibility
• Merchandising
• Publicity
• Recognition
Prospective sponsors for:
• Corporate in-kind support such as food, beverage, seats
• Directed giving such as underwriting the cost of tents
Nonprofit postage rate for:
• Direct mail
• Invitations
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profit organizations. You are not allowed to show a profit but must
reinvest in the charity’s operations and distribute profit to those who
benefit, such as the elderly or children.
During your first meeting with the charity’s leadership, identify
the financial goals for the event and establish your fees for planning
and managing it. A standard rule of thumb for planners and man-
agers of charitable events is to charge fixed and direct expenses plus
a management fee. This limits the earning of the sport management
organization, but it also establishes a secure margin of potential
retained earning for the charity. The donors will want to know prior
to their investment how much of their financial gift will be received
by the beneficiaries and how much will be used for overhead. Figure
13-4 demonstrates a simple way to state the donation so that charita-
ble donors understand and accept your invitation to contribute.
The actual percentage that the charities receive as a result of the
sport event may vary according to your agreement. Some charities
may require a minimum guaranteed donation in the contract. Some
event owners may include a maximum cap on the earnings to be
awarded to a beneficiary. Take, for instance, a successful 3-on-3-
basketball tournament in which the Multiple Sclerosis Society of
Washington, D.C., provided volunteers who assisted with mailings
and recruited teams. The event organizer specified that the charitable
contribution be calculated solely on the entrance fees, with a mini-
mum guarantee of $300 and a maximum $2 per registered team. At
this point, the charity must calculate its potential income to see
whether participation in this event is worthwhile.

Figure 13-4

Sample Donor Language Describing Charitable Gifts


According to the National Society of Fund Raising Executives, the Federal
Omnibus Reconciliation Act of 1993 requires that charitable organizations
soliciting for events where the cost to purchaser/donor is $75 or greater must
disclose in writing to the purchaser /donor the actual monies that are directly
benefiting the charity and are therefore deductible by law. The amount that is
not deductible is the fair market value of the goods or services used to produce
the event. Sample language to notify donors might state: “$50 of your $75 is tax
deductible as a charitable donation.”
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One standard used in measuring the validity of charitable events is


less than 20 percent gross revenues should be allocated for fixed and
direct expenses. The remainder should be used for direct support of
charitable services. This standard may be difficult to achieve when stag-
ing a sport event because of the large up-front costs, but it can be
achieved through sponsorship. Another legal consideration is the
Unrelated Business Income Tax (UBIT) law that the Internal Revenue
Service has recently been enforcing. This law spells out the difference
between a purely corporate donation to a charity and a corporation giv-
ing money to a not-for-profit organization for specific purposes such as
advertising (e.g., sponsorship contracts for college bowl games).
To guarantee a return on their investment, corporations have
included specific requirements that a bowl committee must provide a
sponsor x minutes of TV exposure, x number of signs, and x number
of mentions. The IRS considers this to be a taxable service contract
between the sponsor and the nonprofit bowl committee acting as an
advertising agency, not simply a charitable contribution between a
sponsor and an educational arm of a university, which would not be
taxed. After numerous hearings, the ruling now stands that such
agreements are acceptable under the tax-exempt clause as long as
there is no direct endorsement of the product by the organizing com-
mittee (e.g., “The Orange Bowl encourages you to drink Coke”) and
no language in the contract requiring that such services be rendered
in order to keep the donation.
Two examples of successful sport events that benefit charities are
golf tournaments and various “athons” (e.g., walk, ride, swim). Half
of all proceeds from major golf tournaments are usually designated to
a charity. In addition, a pro-am golf tournament typically precedes
the event that generates additional revenue for the charity. Pro-am
tournaments provide an opportunity for local residents to play golf
with professional golfers and other celebrities for a specified charita-
ble contribution.
The most common sport-related fund-raiser among charities is
the walkathon or bike-a-thon where participants pay an entrance fee
and solicit sponsors for a certain amount of money per mile complet-
ed. Barry Glassman, formerly program director for the Muscular
Dystrophy Association, created the “Tour de Bud” event, which is
basically a glorified bike-a-thon.
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Why an “athon” versus a race? Glassman explains that “it all


comes down to the bottom line.” By staging a “tour,” you can avoid
the expense of a timing system (approximately $6,000) and the hassle
of officials, awards, and so forth. The target audience also consists of
fund-raisers versus competitors. You want to attract individuals who
will bring in a minimum of $65 worth of pledges; not those interest-
ed in becoming Olympic medallists.

SEEKING SPONSORS
Through their networks, charitable organization can be very helpful
in steering you toward prospective corporate donors. The leaders of
not-for-profit boards are often successful business professionals with
extensive contacts in the world of commerce. See Chapter 9 for more
information on seeking sponsors.

THE CHARITY SPOKESPERSON


At some point, a check may be presented to the charity that benefited
from the sport event. Therefore, it is important to designate a
spokesperson. Many charities have official national or, in the case of
UNICEF, international ambassadors who promote their cause.
During your exploratory meetings with the charity, find out
whether it has an official spokesperson and if this person is a celebri-
ty. If the spokesperson is a well-known celebrity, determine if the
“star” will appear in a public service announcement (PSA) to pro-
mote the event. A televised or radio PSA is extremely effective in gen-
erating excitement about the forthcoming sport event. You may also
wish to invite the celebrity to appear at the sport event to throw out
the first ball, fire the starting pistol, or make brief remarks. Be sure
that the celebrity’s role and fees (if there are any) are spelled out clear-
ly in writing when you develop your agreement with the charity (see
Chapter 7 on sport celebrities).

POTENTIAL LIABILITIES
In any relationship, there is always the potential for liabilities caused
by either or both parties. Figure 13-5 lists some threats you should
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CHAPTER 13 CHARITABLE EVENTS 255

Figure 13-5

Charity Threats
• Lack of organization by the charity’s permanent staff
• Inability of the charity’s staff and volunteers to focus on your event until late
in the planning
• Limited or no commitment from the charity’s volunteers
• Too many legal problems in establishing the relationship
• Inability of the charity to market the event effectively to its constituents
• Lack of sponsorship prospects on the part of the charity
• Inability to focus on the sport event because of other responsibilities
• Limitation of staff that can be dedicated to this sport event

recognize early in your planning and monitor throughout the devel-


opment of the sport event.

MEASURING YOUR SUCCESS


Long-Term Success
Charitable golf tournaments, especially in states with warmer cli-
mates, walkathons, and bike-a-thons have successfully provided a
source of funds to nonprofit organizations and will continue to do so.
The key to long-term success is to keep your sponsors and charitable
committees and board members happy.
Despite the founder’s death, the Dinah Shore Golf Tournament
continues to benefit charities. This 26-year-old tournament prospers
not only because of the commitment of its organizers and charitable
beneficiaries, but most importantly, because it has been organized to
achieve long-term success.
To establish your own long-term success, consider planning not
merely in terms of years but of eras. Planning in 5- or 10-year blocks
will help you focus your sights on a long-term future for the devel-
opment of your sport event. Granted, things change. You may decide
to award the proceeds to a new charity, the location may shift, or
other significant changes may take place, but with the proper plan-
ning, this recurring event will endure.
One major advantage of long-term planning is your ability to attract
sponsors who wish to amortize the cost of their event over several years.
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Whether you are negotiating long-term deals with bottlers or other


brand-name products, the marketing decision makers will appreciate
and possibly support your long-term vision. In golf, for example, the
baby boomers are expected to flood the fairways in the next decade.
Therefore, it is a smart move for a sponsor or a city to get in on the action
early and enjoy the ride as the interest in the sport accelerates.

How to Measure Your Success


The charity will measure success primarily in one way: the total net
proceeds that benefit its constituents. Based on experts in the field, a
minimum standard to achieve is 50 percent over and above costs.
Additional measurement scales include positive public relations, new
volunteer involvement, expanded mailing list, and opportunities to
reward and recognize volunteer leaders.
You, as the sport event planner and marketer, will measure success
by your ability to recover your investment, earn a fair profit (although
this would be less than if this were a strictly commercial venture),
develop new fans for your sport, and generate new business.
These goals and objectives are not mutually exclusive. In fact,
they are quite similar. When both the sport event management and
marketing executive and the charitable organization’s executive
director mutually respect these common goals, a win-win scenario is
developed. You could say that a win-win opportunity exists!
Opportunities are infinite to help the greater community through
planning, managing, and marketing a successful charitable sport event.
The next time you are presented with the opportunity to develop a sport-
ing event, why not ask your team, “Whom might we help, together?”
As we enter the final turn or approach the 18th hole, we refuse to
end this game of learning and instead choose to go into overtime with
some additional advice. Remember Yogi Berra’s remark, “It ain’t over
till it’s over”? Yogi was right, and it’s just the beginning, as you will
see in the pages that follow.

GAME HIGHLIGHTS
• Determine if a charity tie-in is appropriate for your sport event.
• Contact the National Association of Fund Raising Executives for
sources of reputable charitable organizations.
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• Organize a planning meeting between your organization and the


charity’s leadership.
• Develop mutually acceptable goals and objectives, especially
financial.
• Establish what resources the charity can bring to your event.
• Create a measurement and evaluation program to identify areas
for improvement.
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C
14
H A P T E R

CLOSING CEREMONIES:
ADVICE TO NEW SPORT
EVENT MANAGEMENT
AND MARKETING
PROFESSIONALS
I don’t get my kicks from flirting with death. I flirt
with life. It’s not that I enjoy the risks, the dangers,
and the challenge of the race. I enjoy the life it gives
me. When I finish a race, the sky looks bluer, the
grass looks greener, and the air feels fresher. It’s so
much better to be alive.
Jackie Stewart, race car driver

GET UP AT DAWN: THE FUTURE IS YOURS


Golfer Ben Hogan was famous for having a brusque man-
ner. A young golfer called him one morning and asked for
some free advice.
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Hogan answered crisply, “Got an alarm clock?”


“Yes,” the young golfer answered in a shy and somewhat con-
fused voice.
He started to ask why when Hogan interrupted, “Tonight, before
you go to bed set it for dawn and go out on the green tomorrow and
start hitting until dark. Do that every day for a year and I’ll be asking
you for pointers.” With that, Hogan hung up!
We don’t know what happened to that young golfer. If statistics
can be trusted, he probably failed to heed “professor” Hogan’s
advice, as do many students. A professor of writing once told his
class of budding authors, “You signed up for a class on How to
Write a Book, but what most of you really want to learn is how to
‘sell’ a book.” The embarrassed adults in the classroom nodded
affirmatively.
Succeeding in the competitive world of sport event management
and marketing requires a combination of talent, hard work, training,
and persistence. Most executives in sport made it to the top of their
profession because they were prepared to do something they loved so
much that they would have done it for nothing. Through training and
experience, they mastered their craft and are now financially reward-
ed for it.
When asked what he liked most about his job, Chicago Bulls exec-
utive Steve Schanwald replied:
Knowing that you have given the fans a good show and good
value for their entertainment dollar. That is really what we are
here to do. We are here to provide a diversion from the drudg-
ery of everyday life, a little bit of an escape, a minivacation for
the people who come to the games. If we accomplish that,
then we can feel good about ourselves. But also you get a lot
of satisfaction out of seeing the growth of the individuals
within the company—seeing them grow as people and pro-
fessionals. I think for the most part, people get into it because
they enjoy it, even though they can make more money doing
other things.
In terms of breaking into the field, Lisa Delpy Neirotti, associate pro-
fessor of sport and event management at The George Washington
University, advises her students to “see and be seen.” Delpy Neirotti,
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CHAPTER 14 CLOSING CEREMONIES 261

who regularly attends major sport events such as the Super Bowl, the
Olympic Games, and other hallmark events, says:
I am constantly making contacts that will increase my stu-
dents’ chances for landing an important job. Knowing the
major sport executives on a first-name basis is essential for
networking. I feel as though I am building a network for the
students not unlike a series of bridges that they must elect to
cross as they move from academia into industry.
Delpy Neirotti realizes, however, that for her students to take full
advantage of these contacts they must understand the sport business
and possess the necessary skills for achievement in the field.
Susan Roane, author of How to Work a Room, recommends that job
seekers develop a brief introduction of themselves that can be given
easily during social encounters such as a reception. She also advo-
cates collecting as many business cards as possible and following up
later with a brief written thank-you note with your business card
enclosed. This technique allows you to collect contact cards for later
reference and to send your own card directly to the offices of people
you met. In this way, the chances of their misplacing your card are
much less likely. More important, the personal written note reminds
them of the meeting; you have begun to weave your net to include
them in your contact group (see Figure 14-1 on networking tips).
No matter how the introduction is made, relationships require
care and feeding. You must extend a hand, take advice, and put it to
good use. Do not waste their time or yours. It is also wise to select a
variety of mentors from different professional and political back-
grounds. Avoid being pigeonholed into any social circle early in your
career.

READY, SET, GO!


Set your alarm for dawn. Go out on the green on cloudy as well as
sunny days. But don’t stop there. As golf legend Ben Hogan advised,
stay later, practice longer, and one day you will not only be produc-
ing award-winning sport events but also the next generation of pros
will seek you out for advice. When they ask, be generous with your
knowledge because there is so much to learn. You are helping to
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Figure 14-1

Networking Tips
• If possible, have someone else introduce you to a key person you wish to
meet. It is always better to have a referral than to make a cold call.
• Always find out the dress code for any function that you attend. Dress
conservatively but memorably. Develop a personal style that sets you apart
from the other contenders. When in doubt, overdress slightly.
• When introduced to someone say, “It is a pleasure meeting you.” Then flatter
them in a straightforward manner. For example, “Joan says that you are
enjoying great success this season with your new radio promotion strategy.
Tell me about it.”
• Encourage others to talk about themselves and listen intently. Showing keen
interest in others will create interest in you.
• Before you end the brief encounter, ask the contact for help. Briefly explain
what you are trying to accomplish and then ask for suggestions. At this
point, it is extremely important that you take a deep breath and listen
carefully because your contact is likely to open up and share some golden
information with you.
• At the conclusion of all encounters, thank the contacts for their time, tell
them it was a great pleasure to meet them, and ask for their card. When they
ask for your card, tell them you do not have cards with you but will mail one
to them.
• Always follow up promptly. Within 72 hours, write a personal note and
enclose your business card. Refer in your note to particular comments made
by the contacts and thank them again for their suggestions.

sculpt a new profession. Use your talents to create a masterpiece of


design that will be a tribute to the champions who brought you this
rich opportunity that you now recognize as sport event management
and marketing.

A FINAL WORD
“Like you, I am a student of this emerging profession of sport event
management and marketing. It is my hope that you will use your tal-
ents to research, plan, manage, and measure sport events in a way
others never dreamed.
“Your talent is needed in this field, but even more crucial to the
field’s continued growth is your commitment to raise the level of pro-
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CHAPTER 14 CLOSING CEREMONIES 263

fessionalism to one of consistent quality. As you pursue your dreams


in this exciting field, don’t let small defeats prevent you from winning
your game.
“In sport, as in politics, it only takes one point to emerge victori-
ous. Put in the extra effort that will help you score the extra point, not
only for yourself but for the entire profession of sport event manage-
ment and marketing.”
—Stedman Graham
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P
3 A R T

APPENDIXES

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In addition to the sample agreements and resources contained in this appendix, the
following additional agreements and resources are available for purchase from The
George Washington University Sports Management Program in Washington, D.C.
Please write or fax your request to:

Lisa Delpy Neirotti, Ph.D.


The GWU Sports Management Program
600 21st Street NW
Washington, DC 20037

(202) 994-1630 (Facsimile)

Available resources

1. Arena Lease Agreement: A sample of the legal terminology exhibited in a tradi-


tional lease agreement used by sport event management.
2. Endorsement Agreement: The agreement used by sport event marketers to identi-
fy endorsement policies and procedures.
3. Insurance Application: A sample of a typical application for comprehensive gen-
eral liability insurance in regular use in the sport event field.
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3. Corporate or association sport event marketing with a focus on developing sports-


related events such as golf tournaments. One example is the New York Times
sports marketing division; another is Xerox Corporation’s Olympic Games
team.
4. National sport organizations responsible for producing events such as national
championships, state games, Olympic trials, and others that require experi-
enced special event managers to coordinate production companies and handle
hospitality, catering, transportation, media, cultural, and other highly detailed
tasks (e.g., United States Olympic Committee, United States Track and Field
governing body).

9. High-level consulting with corporate executives to produce feasibility studies and


other data to determine the viability of staging a sport event. Management
expertise might be provided if the project is given a green light.

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12. Representation and management is another major field to consider. The develop-
ment of athletes as full-fledged superstar sports celebrities is a major field dom-
inated by three firms: International Management Group (IMG), SFX, and
Octagon. In 1999, IMG had annual earnings in excess of $1 billion. With 2,500
full-time employees, IMG dominates the field and makes entry difficult to all
but the best-funded and most aggressive of competitors.
13. New opportunities in Europe, the Pacific Rim, and the rest of the world. Individuals
with a specific interest in other cultures and international business, and who
have a strong second or even third language ability, may wish to consider inter-
national marketing through sport and event management. This field is literally
wide open, especially in Eastern Europe and the Pacific Rim. The National
Basketball Association (NBA) raised over $14 million through exhibition games
in 1999 and is looking beyond the possible 250 million U.S. NBA fans to 5 billion
international fans.
14. Sports museums, halls of fame, and venues are staging special events, primarily in
response to increased financial pressures. Owners now use sports arenas and sta-
dia for events such as tractor pulls, rodeos, concerts, trade shows, flea markets,
and professional wrestling exhibitions to provide new revenue streams.
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Goldblatt, J., and F. Supovitz. Dollars and Events. New York: John Wiley &
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Jozsa, F., and J. Guthrie. How the Major Leagues Respond to Market Conditions.
Westport, CT: Greenwood Publishing Group, Inc. 1999.
Kestner, J. Program Evaluation for Sport Directors. Champaign, IL: Human
Kinetics, 1996.
Mackenzie, J. It’s Show Time! Homewood, IL: Dow Jones-Irwin, 1989.
McCormack, M. What They Don’t Teach You at Harvard Business School. New
York: Bantam, 1985.
Milne, G., and M. McDonald. Sport Marketing. Amherst, MA: University of
Massachusetts, 1999.
Milne, G., and M. McDonald. Cases in Sport Marketing. Amherst, MA:
University of Massachusetts, 1999.
Mullin, B., S. Hardy, and W. Sutton. Sport Marketing. 2d ed. Champaign, IL:
Human Kinetics, 1999.
Olson, J. Facility and Equipment Management for Sport Directors. Champaign,
IL: Human Kinetics, 1997.
Pemberton, K. Sports Marketing: The Money Side of Sports. Marina Del Rey,
CA: Sports Services of America Publishing, 1997.
Pitts, B., and D. Stotlar. Fundamentals of Sport Marketing. Morgantown, WV:
FIT, 1996.
Quirk, J., and R. Fort. Pay Dirt. Princeton, NJ: Princeton University Press,
1997.
Sport Market Place Directory. Chandler, AZ: Franklin Covey Sports Division
(published annually).
The Sports Sponsor Factbook. Chicago, IL: Team Marketing Report (published
annually; phone: 312-829-7060).
Sport Summit Sports Business Directory. Bethesda, MD: EJ Krause (published
annually).
Graham 17 10/5/01 1:36 PM Page 307

REFERENCES 307

Standeven, J., and P. DeKnop. Sport Tourism. Champaign, IL: Human


Kinetics, 1999.
Stier, W. Fundraising for Sport and Recreation. Champaign, IL: Human
Kinetics, 1994.
Stier, W. More Fantastic Fundraisers for Sport and Recreation. Champaign, IL:
Human Kinetics, 1997.
Stotlar, D. Successful Sport Marketing. Madison, WI: WCB Brown and
Benchmark Publishers, 1993.
Wilkinson, D. Sport Marketing Institute Resource Manual. Sunnydale, CA:
The Event Management and Marketing Institute, 1986.

SELECT PERIODICALS
2000 Sports Business Market Research Handbook. Sports Business Market
Research, Inc., Norcross, GA.
Advertising Age. Crain Communications, Inc., 740 Rush St. Chicago, IL
60611-2590
The American Spectator. PO Box 549, Arlington, VA 22216-0549
Amusement Business. 49 Music Square West, Nashville, TN 37203.
Around the Rings. Ed Hula, Atlanta, GA.
Journal of Sport Management. Human Kinetics Publishing, Champaign, IL.
Marquette Sports Law Journal. Marquette University Law School.
Revenues from Sport Ventures (RSV Fax). Mediaventures, Milwaukee, WI.
Sponsorship Newsletter. BDS Sponsorship Ltd., London, UK.
Sport Business: The Magazine for the International Business of Sport.
SportBusiness Limited, London, England.
Sport Marketing Newsletter. Westport, CT (phone: 203/255-1787).
Sport Marketing Quarterly. Fitness Information Technology, Morgantown,
WV.
Sports Business Journal. Street & Smith, Charlotte, NC.
Sports on the Road. Net Works Communications, Englewood, CO.
SportsTravel Magazine. Schneider Publishing Company, Los Angeles, CA.
Stadia. Broadcast Publishing Ltd., Phoenix House, Brighton, UK.
Stadium Insider. Mediaventures, Milwaukee, WI.
Team Market Report. Chicago, IL (phone: 312-829-7060).
Graham 17 10/5/01 1:36 PM Page 308

308 THE ULTIMATE GUIDE TO SPORTS MARKETING

Television Sports Rights 2000. Gould Media, Anna Maris, FL.

SOFTWARE
Sport Director: Professional Edition. Human Kinetics Software, Champaign,
IL, 2000.
Sport Director: Volunteer Edition. Human Kinetics Software, Champaign, IL,
2000.
Youth Sport Director Guide and Software, Rainer Martens, American Sport
Education Program, Champaign, IL.
Graham 18 Index 10/5/01 1:36 PM Page 309

INDEX
À la carte hospitality, 84 Birrell, Jim, 27, 208
Access to events, 120, 122, 123 Birth night, 157
Acteva, 153 Bishop, Eddie, 73
Action sports, 220–222 Blanton, Dewey, 164
ActiveUSA, 153 Board of directors liability insurance,
Advantage Golf, 216 133
Agassi, Andre, 164 Bookend events, 74
AIDS Ride 2000, 222, 248 Brooks, Garth, 141
Alzado, Lyle, 247 Brotman, Charles, 14
Amateur video, 130 Burns, David, 141
Ambush marketing, 100 Burns Sports Celebrity Service, Inc.,
Anthems, 89 141
Aramian, Dylan, 292 Bus drivers, 57
Arbitration clause, 110, 111 Business plan, 177, 178
Arledge, Roone, 10, 151
Arrivals and departures, 58, 59 Cancellation insurance, 132
Athlete protection, 118 Career development, 12–17, 261, 262,
ATP Tour Fan-Feast, 11 287, 288
Auditorium-style seating, 68 Carlson, Christian, 159, 165
Auerbach, Arnold (Red), 97 Carpenter, Sue, 169
Automobile liability insurance, 133 Carrow, Hill, 77
Award ceremonies, 70, 290, 291 Catering, 45, 46
Cause-related marketing, 183
Bach, Carl, 84 Celebrities (see Sport celebrities)
Bald night, 157 Changing the game plan, 92
Barter, 197 Charitable events, 247–257
Basketball, production schedule, amount received by charity, 252
292–295 charitable resources, 250, 251
Bauer, Kirk, 62 charity spokesperson, 254
Berlonghi, Alexander, 116 contracts, 105, 106
Berra, Yogi, 35, 39 finding the right charity, 249
Best effort clause, 103 legal considerations, 250–253
Bil, Ton, 169 long-term success, 255
309

Copyright 2001 The McGraw-Hill Companies, Inc. Click Here for Terms of Use.
Graham 18 Index 10/5/01 1:36 PM Page 310

310 INDEX

measuring success, 255, 256 television, 104


planning meeting, 249 termination/arbitration, 99
potential liabilities, 254, 255 venue, 106
sponsors, 254 Convention and visitors bureaus
tax issues, 252, 253 (CVBs), 73
who benefits, 248 Conversion day, 157
Checklists: Cooke, Alistair, 207
access to events, 120 Cooksey, Terry, 120, 123
golf tournament, 219 Coorigan, Lee, 83
hospitality, 94, 95 Copyright, 200
logistics, 41–43 Cost control, 196, 197
media relations, 170 Costas, Bob, 144
opportunities analysis, 24 Crail, Bonnie, 220, 221
outside agency, 110 Credentialing, 67, 121
sponsorship agreement, 192 Cross-promotional opportunities, 194
strengths analysis, 22 Crowd control, 57, 127
threats analysis, 26 Curl, Elaine, 135
3-on-3 basketball, 221 CVBs, 73
transportation, 61 Cycling events, 208
weaknesses analysis, 23
Cipu, Tom, 46, 48 Dalrymple, Jim, 114, 119
Coca-Cola, 11 Decision-making power, 43
Cold calling, 193 Delpy Neirotti, Lisa, 11, 55, 57, 76,
Collier, Vanessa, 152 102, 124, 178, 179, 183, 188, 226,
Comprehensive general liability, 133, 233, 260, 261
137 Dinah Shore Golf Tournament, 255
Concession lines, 64, 65 Disabled spectators/athletes, 61, 62
Contemporary Services Corporation Discounted promotions, 155
(CSC), 123 Do It Sports, 153
Contests/giveaways, 157–162 Downs, Jim, 220
Contingency planning, 34, 35, 129 Drobbin, Sue Ann, 87
Contingency promotions, 156, 157 Dump, 58
Contracts, 97–112 Dyer, Mike, 30, 179
arbitration clause, 110, 111
formalities, 111 Economic impact studies, 234–245
hospitality, 107 fiscal impact, 243
legal counsel, 108, 109 government subsidies, 243, 244
licensees, 106, 107 multipliers, 242, 243
not-for-profit beneficiaries, 105, 106 nonsurvey method, 241, 242
option to renew/right of first overlooked items, 244, 245
refusal, 98, 99 reporting, 244
outside agency, 109, 110 return on investment (ROI), 244
personnel, 104, 105 survey method, 235–241
risk management/insurance, 99, Emergency precautions, 68, 69, 128
100 Employment multiplier, 242
sponsor/supplier agreements, End-zone seats, 156
100–103 Engel, Joe, 11
sport celebrities, 105 Entrance of athletes, 89
Graham 18 Index 10/5/01 1:36 PM Page 311

INDEX 311

Esiason, Boomer, 143 Franklin Quest Sports Market Place


Event marketing, 151–174 Directory, 181
attracting participants/spectators, Frechtling, Douglas, 203
152, 153 Fried, Gil, 114, 137
contests/giveaways, 157–162 Fuji, 100
corporate, 169–174
five P’s, 169–171 Gann, Dennis, 43, 232, 233
Internet marketing, 162–164 General admission seats, 67
marketing to athletes, 153, 154 General Motors, 183
media relations, 166–170 Geoghan, Bob, 142
promotions, 155–162 Gerig, Pam, 195
selling out the stands, 154–162 Giveaways, 160, 161
televising the event, 171–174 Glassman, Barry, 66, 77, 253, 254
turning negatives into positives, Goldblatt, Joe Jeff, 203, 204
164–166 Golf Group International, 216
Exclusivity, 100, 101, 106 Golf tournaments, 214–220, 253
Extreme sports, 220 Grabijas, Marty, 186
Graham, Stedman, 12, 250, 263
Fact Book, 184, 186 Green, Chris, 227
Falk, David, 110 Greeter, 90
Farmer’s Almanac, 56 Griffith, Steve, 167
Feedback, 94, 246 Guest needs/expectations, 85
(See also Economic impact studies) Guest’s bill of rights, 87
Festival seating, 67
Final impression, 88, 89 Hallmark event, 69, 70
Financing, 177–198 Hardie, Mark, 163
business plan, 177, 178 Higher-priced tickets, 84, 85
cost control, 196, 197 Hilton, Tom, 127
follow up, 190–193 Hiring staff, 122–124
foundation grants, 195 Hogan, Ben, 259, 260
government entities, 196 Home promotional schedule (Buffalo
know your event, 179–183 Bisons), 7–10
nonsponsorship sources, 195, 196 Hoop-It-Up, 218
outside agencies, 194, 195 Hospitality, 81–96
prospecting corporate sponsors, à la carte, 84
183–186, 193 action plan, 108
servicing sponsors, 193, 194 budget, 92, 93
sponsorship (see Sponsorship) checklist, 94, 95
written proposal, 186–190 contracts, 107
First impression, 88, 89 packaged programs, 82–84
Fiscal impact, 243 strategies, 85–92
Flag raising, 89 Hospitality centers, 84
FMI, 125, 202 Hotels, 71–74
Food and beverage, 63–65 Household income multiplier, 242
Forgery of tickets, 66 Hulsmeyer, Robert W., 292
Foundation grants, 195 Hunte, Jeannine, 34
Four corners rule of contract law, 111
Foyt, A. J., 139 IEG Directory, 184
Graham 18 Index 10/5/01 1:36 PM Page 312

312 INDEX

Iliad (Homer), 5 checklist, 41–43


Incident reporting, 130, 131 disabled spectators/athletes, 61, 62
Income multiplier, 242 emergency precautions, 68, 69
Independent contractor agreement, food and beverage, 63–65
267–272 four key commandments, 77–79
Information desks, 91 hallmark/recurring events, 69, 70
Inland marine insurance, 133 hotels, 71–74
Insurance, 99, 100, 131–136 safety, 68, 69
International events, 30, 31 seating, 67, 68
International week, 157 tickets/admissions, 65–67
Internet: traffic control, 56, 57
corporate information, 184 transportation, 58–61
disseminating information, 190 uniforms, 53–55
marketing, 162–164 vendors, 43–49
setting tickets, 157 venue selection, 55, 56
web developer, 49–52 volunteers, 52, 53
Internet rights, 163, 164 weather, 56
Invitations, 87, 88 web developer, 49–52
Lombardi, Vince, 81
Jarvis, Mike, 157 Lone Star Junior Volleyball Classic,
JCPenney, 203 153, 154
Job advertisements, 16 Loss of key personnel, 34
Job search, 12–17, 261, 262, 287, 288 Loss prevention, 118, 119
Jordan, Michael, 3 Luxury boxes, 67
Jordan-Lock, Jennifer, 13, 48, 108, 111,
168 M&M Mars, 11, 186
Madden, John, 144
Kalish, Susan, 209 Made-for-television events, 10
Kelly, Jack, 35 Marketing (see Event marketing)
Kenah, Richard, 71 Marketing Evaluations/TVQ, 140
Kerrigan, Nancy, 126 Marketing newsletter, 193, 194
Kiosks, 202 Marsh, Andrew, 54
Knorra, Peggie, 72 Marshall, George Preston, 11
Mattel, Inc., 201
Lacz, Susan, 48, 63, 82 McCullers, Mark, 65, 232
Lathrop, Joe, 156 Media center, 168, 169
Lawyers appreciation night, 157 Media relations, 166–170
Licensed merchandise, 199–203 Meetings, 31, 32
Licensing agreement, 106, 107, Merchandise sales, 199–205
279–286 Minker, Melissa, 193, 194
Lillehammer logistical case study, 76, Moore, LeConte, 134
77 Moxley, Jan, 26
Limited-edition posters, 200 Multicity sports events, 222, 223
Logistics, 39–79 Murphy, Derek, 185
action plan, 75, 76
ask the right questions, 39, 40 Nastase, Ilie, 175
award ceremonies, 70 National Weather Service, 56
bookend events, 74 Nealis, Richard, 179
Graham 18 Index 10/5/01 1:36 PM Page 313

INDEX 313

Negatives, turning, into positives, Precedence of political order, 299, 300


164–166 Precedence positions, 302, 303
Networking, 261, 262 Pressroom, 169
Nicholson, Jack, 141 Primary research, 183, 184
Nike, 4, 100 Prize indemnity, 132, 133
Not-for-profit events (see Charitable Production schedule, basketball,
events) 292–295
Novelties, 90 Promotions, 155–162, 194
Property insurance, 133
Olympic Games, opening/closing Protocol, 88, 89, 96, 299–303
ceremonies, 296–298 Public service announcement (PSA),
Open seating, 67 254
Opening/closing ceremonies, Public transportation, 55, 57
Olympic Games, 296–298
Opportunities analysis checklist, 24 RAGBRAI, 232, 233
Option to renew, 98, 99 Raskin, Grady, 158
Organizational chart, 44 Recall bias, 238
Outsourcing (outside agencies): Recurring event, 70
checklist, 110 Reference material, 37, 96, 305–308
contracts, 109, 110 Request for proposal (RFP), 45–49
hotels, 73 Reserved seats, 67
sponsorship sales, 194, 195 Response bias, 238
Overton, Todd, 135 RFP, 45–49
Rider, Alan, 17
Palmer, Jim, 140 Right of first refusal, 98, 99
Parasite marketing, 100 Rinehart, Robert, 11
Parking, 57 Risk assessment, 116–118
Participant accident coverage, 133 Risk management, 113–138
Party favors, 90 access to events, 120, 122, 123
Pavelko, Dave, 47 action plan, 100
Payne, Michael, 163 anticipating problems, 128–130
Pearson, Jim, 135, 136 athlete protection, 118
Perelman, Richard, 93 “ects” of, 137
Perry, Barbara, 118 hiring staff, 122–124
Pin trading, 90 incident reporting, 130, 131
Pitts, Brenda, 226 insurance, 99, 100, 131–136
Planning, 19–37 loss prevention, 118, 119
celebrating success/stress, 31–33 risk assessment, 116–118
checklist, 28, 29 safety, 126–128
contingencies, 34, 35 securing valuables, 120
international events, 30, 31 statistics, 114, 115
meetings, 31, 32 storage, 119
SWOT analysis, 20–26 training, 115
uniqueness, 30 transporting goods/valuables,
Police officers, 56, 127 124–126
Power outage, 35 wrap-up, 125
Pozzi, Emilio, 207 Roane, Susan, 261
Precedence of order of states, 300, 301 Rozelle, Peter, 77
Graham 18 Index 10/5/01 1:36 PM Page 314

314 INDEX

Ruday, Jeff, 52, 192 Sponsorship agreement, 100–103, 192,


Rumsfeld, Donald, 19 273–276
Running races, 208–214 Sport celebrities, 139–149
contacting/persuading the celebri-
Safety, 68, 69, 126–128 ty, 141–143
Salary guide, 16 contract, 105
Sample agreements: cost, 143, 144
independent contractor agreement, creative suggestions, 148, 149
267–272 finding the right match, 140, 141
licensing agreement, 273–276 step-by-step instructions, 146–148
sponsorship agreement, 279–286 Sport pictograms (1994 Winter
Scalping, 66 Olympic Games), 6
Schanwald, Steve, 126, 260 Sports events, 7, 288, 289
Schneider, Tim, 225 (See also Specific sports events)
Seating, 67, 68, 156 Sports Market Place Directory, 4, 141,
Secondary research, 184 181
Securing valuables, 120 Sports-sponsor partnership, 158, 159
SES, 202 Sports Summit Sports Business
SFX, 4, 14 Directory, 181
SignMeUpSports, 153 Sports tourism, 225–246
Silberman, Barry, 39, 40, 122 assessing your community, 227, 228
Silent auctions, 216 bidding for events, 229–232
Smith, Dirk, 73 economic impact studies, 234–245
Smith, Red, 1 (See also Economic impact
Smith, Valene, 200 studies)
Software packages, 26, 27, 37, 308 exit studies, 246
Solomon, Jerry, 126 homegrown events, 232, 233
Souvenir gifts, 90 marketing your city, 233, 234
Speakers bureaus, 141 sports commission, 227
Specific sports events, 207–223 Sports-travel specialist, 73
action sports, 220–222 SportsTravel, 60
cycling, 208 Spot-checkers, 124
golf tournaments, 214–220 Stadium-style seating, 68
multicity sports events, 222, 223 Steeg, Jim, 245
running races, 208–214 Stewart, Jackie, 259
3-on-3 basketball, 218–221 Storage, 55, 119
ultra sports events, 222 Strengths analysis checklist, 22
Sponsorship: Stupp, Howard, 104
benefits for sponsor, 180, 181 Summer, William Graham, 5
budget, 171 Supovitz, Frank, 27, 60, 232
charitable events, 253, 254 Susan G. Komen Breast Cancer
fees, 103 Foundation Race, 152, 248
hotels, 72 Swain, Bernie, 144
importance, 179 Swanson, Tom, 218
levels of, 182 SWOT analysis, 20–26
maximizing value, 173
recruiting, 183–186, 193 T-shirts, 200, 202
(See also Financing) Target markets, 154, 155
Graham 18 Index 10/5/01 1:36 PM Page 315

INDEX 315

Tarkenton, Fran, 19 Undercover spectators, 124


Taylor, Jeanne, 44, 47 Uniforms, 53–55
Tear-down phase of an event, 125 Uniqueness, 30
Televising the event, 171–174
Television contracts, 104 Value engineering, 93
Tennery, Michele, 83 van der Rohe, Mies, 36
Territorial rights, 102 Vandak, Jim, 153, 209
Theme nights, 156, 157 Veeck, Bill, 11
Thomas, Ron, 197 Vending kiosks, 201, 202
Threats analysis checklist, 26 Vendors, 43–49
3 X 2 X 3 rule, 104 Venue contracts, 106
3-on-3 basketball, 218–221 Venue selection, 55, 56
Three-ring binder, 28 Video/audio news release
Thrust-style seating, 68 (VNR/ANR), 170
Ticket price, 154 Virginian Soccer Tournament, 154
Ticket service charges, 65 Visa, 183
Tickets/admissions, 65–67, 120, 122, VNR/ANR, 170
123 Volunteers, 34, 52, 53
Tourism (see Sports tourism)
Tournament Builders, 26 Wage income multiplier, 242
Trade shows, 204 Wakeham, Hugh, 88, 89, 299
Trademark, 101, 102, 200 Walk through, 118
Traffic control, 56, 57 Washington Speakers Bureau, 141
Training, 115 Watson, A. J., 177
Traits of sport event managers, 15 Weaknesses analysis checklist, 23
Transportation, 58–61 Weather, 34, 35, 56, 220
Transporting goods/valuables, Web developer, 49–52
124–126 Witkowski, Dan, 77
Trickle, 58 Woodruff, William “Woody,” 111
Workmen’s compensation, 133
Ueberroth, Peter, 11, 32
Ukman, Lesa, 98, 109, 182, 183, 191 Zaharias, Babe Didrikson, 113
Ultra sports events, 222
Graham 18 Index 10/5/01 1:36 PM Page 316

ABOUT THE AUTHORS


Stedman Graham is president of Graham and Associates, a leading
sports marketing firm that has played a role in events including the
Volvo Tennis Tournament and the NBA Legends Pride Classic. An
adjunct professor at Northwestern University’s Kellogg Graduate
School of Management, Graham is the best-selling author of You Can
Make It Happen and Teens Can Make It Happen. He also writes a popu-
lar column for Inside Sports.

Lisa Delpy Neirotti, Ph.D., is director of the sports management pro-


gram at The George Washington University. Dr. Neirotti consults
with corporate sponsors and sports commissions around the world
and is a frequent contributor to academic and industry publications.

Joe Jeff Goldblatt is director of the event management program at


The George Washington University. The author of Special Events: The
Art and Science of Celebration, Goldblatt has produced corporate events
for Marriott, Xerox, and dozens of other Fortune 500 companies.

Copyright 2001 The McGraw-Hill Companies, Inc. Click Here for Terms of Use.

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